Growth in the UK’s manufacturing sector was the strongest for 18 years according to the survey with the size of total order books and the pace of output growth over the past three months being the highest recorded since 1995.
The survey found that order books relative to normal levels were their strongest since March 1995 with export demand also firmly above average.
Output volumes over the three months to November rose at their fastest rate since January 1995, with all but one sector (electrical engineering) reporting growth.
Manufacturers expect output growth to continue at a robust pace over the coming three months.
CBI Director of Economics Stephen Gifford (pictured) said: “This new evidence shows encouraging signs of a broadening and deepening recovery in the manufacturing sector. Manufacturers finally seem to be feeling the benefit of growing confidence and spending within the UK and globally.”
However, he went on to warn:”But challenges remain. UK exporters need government support to break into high-growth export markets to reduce their vulnerability to any further Eurozone flare-ups.”
The survey’s key findings included:
· 36% of firms reported that total order books were above normal in November and 25% said they were below, giving a balance of +11%, the highest balance since March 1995 (+11%)
· 28% reported that export order books were above normal in November and 27% that they were below, giving a balance of +1%, well above the long-run average of -20%
· The volume of output in the three months to November rose at its fastest rate since January 1995 (+29% balance)
· Firms expect output growth to continue at a similar pace in the next three months: 44% expect to raise output and 20% expect to reduce output, giving a balance of +24%
· Stock adequacy of finished goods was below average (+7%) for the third consecutive month, while expected price growth rose from October’s fifteen-month low to +5%.
Copyright Ken Hurst 2013