The Confederation of British Industry (CBI) released a study on Monday that indicated that British factories have matched a three-decade high for orders this month, indicating that despite Brexit, manufacturers are riding high.
According to the CBI Industrial Trends Survey:
- 28% of manufacturers reported total order books to be above normal;
- 28% of firms said their export order books were above normal at +16%, well above the long-run average of -18%;
- 42% of businesses said the volume of output over the past three months had increased, 11% indicated is had decreased- this provides a rounded balance of +30% above the long-run average of +4%;
- 29% of companies expect average selling prices to increase in the coming three months, with 6% predicting a decline, providing a balance of +23%;
- 51% of firms across the UK will grow their workforce in the year ahead;
- Confidence is highest amongst the Small and Medium-Sized firms (58%); and
- 52% of firms aim to raise pay for their employees in line with or above inflation in the coming year.
These figures provide a sense of optimism within the manufacturing industry and indicates that despite gloomy predictions, British businesses are doing well in spite of Brexit. Whilst manufacturing only counts for 10% of Britain’s economy, the Bank of England hopes exports can soften the hit to overall growth.
The CBI’s Employment Trends Survey was a survey of 371 manufacturers was conducted between November 22 and December 12.