Order Books Hit 18 Year High Whilst Exporting Figures Also Improve
The UK’s manufacturing sector continues to drive forward current economic growth after an influential study revealed that order books and output were at the highest level since 1995.
After questioning almost 400 businesses, the CBI’s Industrial Trends Survey also discovered that export orders had reached their highest point for almost two years.
The CBI report claims that much of the growth during the period up to December 2013 was driven by the chemicals and motor vehicles and transport equipment sectors.
The study also pointed to future growth during the next three months, albeit at a slower rate.
Stephen Gifford, CBI Director of Economics, said: “The manufacturing sector is showing further signs of momentum with nearly all sectors reporting growth for a second month.
“Total order books and output growth have maintained the strong performance from last month, while export orders have also shown an encouraging upturn in fortunes.
“While risks remain in the Eurozone and beyond, this survey provides further evidence that the recovery is becoming more embedded.”
A large proportion of UK manufacturers are small and medium-sized businesses and it is very encouraging that their order books are filling up and also that they are positive about the future. The fact that exporters are experiencing some growth is great to see and it is crucial that this continues.
“Once again we are seeing positive economic sentiment being translated into orders and expansion, but it is vital that this is matched by support, whether that be financial, assistance from the Government, or in relation to the myriad of legal issues facing ambitious SMEs.
“A growing business not only faces issues in relation to a growing workforce, it often needs to deal with an increase in the number of commercial disputes as its network on suppliers and customers increases. SMEs need to deal with these issues quickly and effectively and choosing a specialist team of lawyers who understand the needs of small and medium-sized firms is essential.”
Steven Beahan - Partner