Innovation spend hits 25-year high
23 Jul 2014
The number of manufacturers planning to invest in product and process innovation is at its highest level for 25 years, according to a survey by the CBI.
The business lobby group’s latest industrial trends survey of 481 firms, published yesterday, cites 41% of manufacturers reporting an increase in total orders in the three months to July 2014 and 17% a decrease, giving a balance of +24%. The balance of manufacturers’ intentions to invest in product & process innovation was at its highest level since 1989 at +32%.
Intentions for plant & machinery spending also remained steady, with a balance of +6%, and the number of firms saying expanding capacity would be the main reason for investment over the next twelve months rose to 51%, a survey high.
Investment intentions for the year ahead are looking healthy across the board
CBI deputy director general Katja Hall
“The recovery in the manufacturing sector is keeping a good pace,” said CBI deputy director general Katja Hall.
“Industry is performing well as orders and hiring are on the up, and investment intentions for the year ahead are looking healthy across the board.”
However, Hall added that there were still risks to the recovery, which included “increasing international political instability, and the recent rise in sterling, which could be weighing on exports”.
“We need to continue to help manufacturers to export their products to high-growth markets across the globe, to give a healthy and sustainable boost to the UK’s recovery,” said Hall.
The CBI survey follows the publication of a UK Trade & Investment report earlier this week that showed an increase in foreign direct investment into the UK process sectors.
