Manufacturing hits 18-year high
21 Nov 2013
UK manufacturing growth over the past three months was its strongest for 18 years, according to the latest survey of industrial firms by business lobbyist the CBI.
The CBI’s latest Industrial Trends Survey shows that both the size of total order books and the pace of output growth over the three months to November were the highest recorded since 1995.
The survey of nearly 350 manufacturers found that 36% of firms reported total order books above normal levels in November, with 25% saying they were below, giving a balance of +11%, the highest balance since March 1995 (also +11%).
Manufacturers finally seem to be feeling the benefit of growing confidence and spending within the UK and globally
CBI Director of Economics Stephen Gifford
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.
“This new evidence shows encouraging signs of a broadening and deepening recovery in the manufacturing sector,” said CBI Director of Economics Stephen Gifford.
“Manufacturers finally seem to be feeling the benefit of growing confidence and spending within the UK and globally. Both order books and the pace of output growth are the strongest they’ve been since 1995, and firms are expecting similar-paced growth over the coming three months as well.”
However, Gifford added that there will still many challenges facing UK manufacturing, in particular the inability of many firms to reduce their dependence on the Eurozone for export orders.
“UK exporters need government support to break into high-growth export markets to reduce their vulnerability to any further Eurozone flare-ups,” said Gifford.
