There was fresh hope for manufacturers today with a new report revealing that order levels were running at the highest level since June 2002, while output is expected to grow for the first time in nearly a year.
The monthly trends survey by the Confederation of British Industry (CBI) found that although UK manufacturers were still struggling, the recovery in the global economy was “filtering through.”
According to the study, 16 per cent of manufacturing firms said that total orders were above normal in December, while 35 per cent said they were under par. The balance of minus 19 was the best figure since June 2002.
For the first time since January, more manufacturers told the CBI that output would rise over the next three months than said it would fall.
The output confidence figure of plus five per cent compares with minus two per cent last month and is the strongest ‘feel good’ factor in the ailing industry since last October.
Prices were still expected to continue falling over the next three months, but at the slowest rate since January 2001.
As reported by Startups.co.uk, the manufacturing sector has endured a difficult three years, with falling orders and productivity leading to many firms closing down or shedding staff.
Doug Godden, of the CBI, said that manufacturers are still facing a “really tough” uphill battle, with over a third saying that order books remain below normal.
“But the survey suggests conditions are slowly getting better. Firms now expect to increase output, albeit by only a little, in the coming months,” he said.
