UK manufacturing growth strongest for 18 years – CBI

CBIGifford300newThe recovery of UK manufacturing is accelerating, says the CBI, following the publication of its latest Industrial Trends Survey today.

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

Advertisements

About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
This entry was posted in Electronics, exports, Government/statistics, Manufacturing management and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s