Factory output has grown at the fastest pace since January 1995 in the three months to July.
The quarterly CBI Industrial Trends Survey of 397 manufacturers also found that employee headcount increased at the fastest rate for three years and that hiring intentions for the coming quarter also improved.
Firms are optimistic about the future prospects for overall demand and output growth is expected to continue to increase strongly in the next quarter.
Rain Newton-Smith, CBI Chief Economist, says: “Output growth among UK manufacturers is the highest we’ve seen since the mid ‘90s, prompting the strongest hiring spree we’ve seen in the last three years. Cost pressures are easing and firms are upbeat about the outlook for export orders.
“It’s great to see the benefits from the decline in sterling for UK exporters feeding through. But the flipside is the broader hit to consumer spending power across the economy from stronger inflation, which is likely to have fuelled the slowdown in the economy in Q1 and is expected to pull down growth in Q2.”
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Contact Steve Govey or your usual Beavis Morgan Partner for further information about how we can assist you and your business.