The latest CBI Industrial Trends report shows that manufacturers are enjoying a bumper period of activity, with demand for their products at the highest level in almost 30 years.
The survey of 464 manufacturers shows the strengthening of total and export order books was underpinned by a broad-based improvement in 13 of the 17 industrial sub-sectors tracked each month, with the food, drink & tobacco and chemicals sectors leading the charge. Export orders also improved to a 22-year high, hitting similar peaks to those seen in 2011 and 2013. Pricing pressures do however remain strong, with manufacturers continuing to expect a sharp rise in average selling prices.
Commenting on the findings Rain Newton-Smith, CBI Chief Economist, says: “Britain’s manufacturers are continuing to see demand for ‘Made in Britain’ goods rise with the temperature. Total and export order books are at highs not seen for decades, and output growth remains robust.
“Nevertheless, with cost pressures remaining elevated it’s no surprise to see that manufacturers continue to have high expectations for the prices they plan to charge.
“To build the right future for Britain’s economy, manufacturers and workers, the Government must put the economy first as it negotiates the country’s departure from the EU. This approach will deliver a deal that supports growth and raises living standards across the UK.”
At Beavis Morgan, our specialist advisers to the manufacturing sector are able to assist with all aspects of business performance including ensuring that adequate measures are put in place to protect the health of your business, both now and for the future.
Contact Steve Govey or your usual Beavis Morgan Partner for further information about how we can assist you and your business.