Sharp rise in manufacturing optimism
23 Apr 2014
The manufacturing sector has seen a sharp rise in business optimism, according to a survey conducted by the Confederation of British Industry (CBI).
The Industry Trends Survey this month found that more than 40% of the 405 manufacturers questioned were more optimistic about the general business situation than three months ago, with 38% reporting an increase in total orders.
The balance for new domestic orders represented growth of 17%, the highest since April 1995, while the balance for new export orders also represented growth of 16% for the first quarter of 2014.
Confidence is rapidly rising among British manufacturers, with a real sense of business optimism
CBI chief policy director Katja Hall
Meanwhile, 32% of firms reported a rise in output volumes and 17% a decline, giving a balance of 15%, while growth in numbers employed remained strong at 18%.
“Confidence is rapidly rising among British manufacturers, with a real sense of business optimism,” said CBI chief policy director Katja Hall.
“Our industrial base is seizing a bigger role in the UK’s economic recovery, with output, orders and hiring all on the up.”
Manufacturers expect growth in total orders to continue to rise into the second quarter of 2014, with 36% expecting an increase.
Similarly, investment intentions for the year ahead in plant & machinery are expected to improve (16%) on last year’s figures of 4%, and investment for product & process development (27%) and training (26%) is expected to rise on the same period.
“There are still bumps in the road ahead. However, expectations for growth in the coming three months are positive and manufacturers plan to significantly ramp up investment in the year ahead,” Hall added.
