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    Manufacturing

    Confidence is coming back

    • By MTDCNC
    • May 18, 2021
    • 2 minute read

    Manufacturing optimism in the three months to April improved at its quickest pace since 1973, while investment intentions rebounded, according to the CBI quarterly trends survey.

    The survey found that firms expect to increase capital expenditure in the next year. In particular, investment intentions for machinery were at their strongest since July 1997.

    Manufacturing output was broadly flat in the quarter to April, while total new orders grew at the quickest pace since April 2019. Both output and order growth are expected to pick up rapidly in the next quarter. Domestic orders grew at their fastest pace since July 2018 and firms anticipate this will improve. Meanwhile, export optimism strengthened after successive decline over almost three years. Rain Newton-Smith, CBI Chief Economist, said: “Manufacturers have reported the biggest increase in optimism in nearly 50 years in this survey. Phased reopening has lifted the mood among firms, notably driving orders, employment, and investment plans.

    Output grew in 11 out of 17 sub-sectors, with growth in the electronic and aerospace sub-sectors offset by declines in food, drink and cars. Manufacturers expect output to pick up rapidly next quarter (+36%) and total new orders to April grew at their quickest pace since 2019 (+5 from -12% in January). Domestic orders expanded at their fastest rate since July 2018 (+6 from -20% in January) while export orders were flat (-3 from -13%).

    Manufacturers expect total new order growth to accelerate next quarter (+20%). Domestic orders growth is anticipated to quicken (+17%), while export orders are expected to be relatively unchanged (-5%). Numbers employed in the three months to April (+10% from -10% in January) grew at their quickest pace since July 2018.

    https://cdn.mtdcnc.global/cnc/wp-content/uploads/2021/05/18135021/British-manufacturing-SW-latest-640x360.jpg

    Confidence is coming back

    Manufacturing optimism in the three months to April improved at its quickest pace since 1973, while investment intentions rebounded, according to the CBI quarterly trends survey.

    The survey found that firms expect to increase capital expenditure in the next year. In particular, investment intentions for machinery were at their strongest since July 1997.

    Manufacturing output was broadly flat in the quarter to April, while total new orders grew at the quickest pace since April 2019. Both output and order growth are expected to pick up rapidly in the next quarter. Domestic orders grew at their fastest pace since July 2018 and firms anticipate this will improve. Meanwhile, export optimism strengthened after successive decline over almost three years. Rain Newton-Smith, CBI Chief Economist, said: “Manufacturers have reported the biggest increase in optimism in nearly 50 years in this survey. Phased reopening has lifted the mood among firms, notably driving orders, employment, and investment plans.

    Output grew in 11 out of 17 sub-sectors, with growth in the electronic and aerospace sub-sectors offset by declines in food, drink and cars. Manufacturers expect output to pick up rapidly next quarter (+36%) and total new orders to April grew at their quickest pace since 2019 (+5 from -12% in January). Domestic orders expanded at their fastest rate since July 2018 (+6 from -20% in January) while export orders were flat (-3 from -13%).

    Manufacturers expect total new order growth to accelerate next quarter (+20%). Domestic orders growth is anticipated to quicken (+17%), while export orders are expected to be relatively unchanged (-5%). Numbers employed in the three months to April (+10% from -10% in January) grew at their quickest pace since July 2018.