Manufacturers see encouraging growth in orders during February
MANUFACTURERS have seen an encouraging growth in order books during February, latest figures show.
The picture is in marked contrast to the end of 2011 when the crisis in the Eurozone caused a sharp decline in output due to weak demand.
The CBI said that as a result of the latest figures, released as part of its monthly Industrial Trends Survey, many firms were now predicting solid output growth over the coming three months.
Of the 471 manufacturers responding to the survey, 21% reported total order books to be above normal, while 23% said they were below. The resulting rounded balance of -3% is well above the long-run average (-18%) and a significant improvement in the levels of recent months.
Export orders also saw a similar upturn, with 22% of respondents stating that levels were above normal and 24% saying they were below, giving a balance of -2%, compared to the long-run average of -21%.
As a result of the improvement in orders, for the second month running UK manufacturers expect production to rise over the next three months, with a balance of +15% expecting an increase in their volume of output.
Ian McCafferty, CBI Chief Economic Adviser, said: “The improvement in manufacturing conditions seen in January has been sustained this month. Both domestic and overseas demand have strengthened, underpinning solid expectations for output growth, which is encouraging news, given the particularly difficult period for business in the final quarter of 2011.”
Elsewhere, manufacturers’ organisation EEF has said the Government still needs to do more to reinvigorate the economy.
Commenting on a speech by the Business Secretary Vince Cable at the Manufacturing Summit, Richard Halstead, Midlands region director at EEF, said: “If government wants to get business investing and creating the jobs our economy urgently needs we need to see a re-invigorated effort to set out its ambitions for our economy to the end of this Parliament and the policies that will deliver them.”
