CBI: Firm Growth In Manufacturing Sector

The CBI Claims Manufacturers Are Experiencing "Firm" Growth


Fergal Dowling, Partner | +44 (0)121 214 5476

Demand for UK-made goods rose strongly in June, according to the Confederation of British Industry (CBI).

Order books reached their strongest level since December's 18 year high, while growth was seen in 14 out of 17 manufacturing sectors.

Food and drink was the best performer, reporting its best order books in four years, while exporters also did well, reporting strong results in the mechanical engineering, electronics and motor vehicle industries.

Katja Hall, CBI deputy director-general, said: "Demand for British made goods remains buoyant and that’s helped drive this quarter’s further rise in output.

"Growth is broad-based, with the recovery spreading its roots and firms have high hopes for the coming quarter.

"However, the recent rise in Sterling could impact on the resilient export orders we've seen lately. As a result, now is the right time to capitalise on boosting manufacturing further by taking action to strengthen the UK's supply chains."

This is not the first time the UK's private sector has reported above-average results in the past few months.
In the head-up to the 2015 general election, prime minister David Cameron is said to be confident that recent GDP gains, as well as positive manufacturing order books, will help him to secure a majority.

However, Labour claims that only a minority are feeling the benefits of this improved economic stability.

Labour plans to campaign on a cost-of-living platform that blames the coalition for failing to pass on financial gains to poorer people, while the Liberal Democrats aim to outline their vision for a fairer society.

UKIP are focusing on the financial and societal benefits of leaving the European Union, although the Green Party are also hoping to make in-roads to add to their Brighton Pavillion constituency victory in 2010.

Plaid Cymru and the Scottish National Party aim to extol the benefits of further devolution, although the latter may not take part if they are successful in their referendum campaign.

Expert Opinion
It is very positive for British SMEs in the manufacturing sector to see these figures and it shows how businesses are benefitting as the economy continues to improve.

"With the positivity growing, it is likely that small businesses will be considering their next steps in developing their offerings. We would urge any such companies looking to the future to seek advice from their support network to ensure they are prepared for the growing pains which the future may bring.

"Having a lawyer as part of that mix, to provide employment law, corporate, deal, finance and real estate advice, is an absolute necessity."
Fergal Dowling, Partner