UK manufacturing is expanding at the fastest rate in two years, according to a new survey by the Confederation of British Industry (CBI). The lobby group’s report is one of several signals that Britain’s manufacturing sector, which has struggled with limited orders over the past two years, is on the way back up the economic ladder.
The CBI report indicates that 25 percent of British manufacturing firms saw their total sales increase during July and August. This was matched by 25 percent of UK manufacturers indicating that their orders had declined during the month.
While the figures, which come to a round zero percent, may not seem particularly impressive, they’re a significant improvement over the -8 percent net balance that analysts had anticipated.
They’re also the highest figures on record since April of 2011, putting the sector in its best shape for two years. Export figures are also improving for many of the UK’s top manufacturing firms and export-driven companies.
10 percent of participants in the 400-firm survey reported that their international orders had increased over the past month. Despite this, 25 percent listed a reduced level of exports, putting the total export balance at -7 percent for the month.
Again, despite the negative balance, the figure puts the export-driven manufacturing sector in its best position since June of 2012. Analysts believe that growing demand from overseas buyers will lead to a gradual improvement in the net export balance.
The manufacturers that benefited the most from Britain’s recovering economy were primarily small businesses. Metal and electrical products saw their growth balances increase to 51 percent, while building materials grew to 49 percent.
Over 25 percent of manufacturers also reported that they expect sales to increase in the next three months, up from six percent in previous surveys. The data suggests a bright future for the UK’s once struggling manufacturing sector.Read more
Economy August 20, 2013
The British economic recovery is still in its early days, according to a new report from the Confederation of British Industry. The CBI, which had forecast 1 percent economic growth during the year, has increased its estimate to 1.2 percent due to improved consumer spending and increased access to credit.
Britain’s economy has gained a large amount of momentum over the past quarter as a growing number of would-be homeowners have gained access to affordable credit to finance their homes. Other economic advantages include improved spending by consumers due to an improving labour market.
The CBI claims that Britain’s annual economic growth rate will likely climb to 2.3 percent during 2014, setting the stage for a large-scale economic recovery. Many industries have seen significant improvements in economic conditions recently, including the construction sector and many of Britain’s top exporters.
CBI Director-General John Cridland claims that the UK economy has’ started to gain momentum’ but that we would ‘need to see a full-blown rebalancing of the economy’ in order to call the recovery a sustainable improvement. The group believes that the UK economy needs stronger business investment before it will truly recover.
Several economic signals have indicated that the UK is on the right rack after years of economic concern. The amount of jobless Britons claiming benefits decreased in the last month at twice the rate estimated by some of the country’s top economists, leading many to claim that the UK was on the path to long-term recovery.
Despite its more optimistic economic estimates, the CBI noted that the UK economic improvement was still in its ‘early days.’ With the Eurozone moving out of its recent period of economic decline, the UK export sector may be the driving force behind an increasingly strong economy.Read more
In recent years, fat cat salaries have come under consumer as well as government scrutiny, which have prompted serious controversy. Not only is the UK under fire for the way in which top execs are remunerated, even when companies have suffered serious losses, but the United States and other leading nations have also been party to these practices.Read more
Economy February 24, 2012
So far in 2012, the UK manufacturing sector has rebounded and prospects for the rest of the year are quite positive. After a bleak end to the previous year, orders are up both at home and abroad. According to the CBI, the manufacturing sector is at its highest point within the past half year and according to the order books of 471 manufacturers that were surveyed, order books show the upward trend is continuing.Read more
According to the director general of the Confederation of British industry, John Cridland, it will be the private sector which will drive the UK economy throughout this year and over the foreseeable future. Even so, confidence in the business sector remains weak and it is the hope of CBI that increased investments in this sector will be the key to a stronger economy.Read more
UK factories have been recording the lowest exports since almost two years ago in January of 2010 and it is attributed largely to the debt crisis in the eurozone. In a monthly report released by the CBI, as many as 44% of UK factories reported that their exports were below average for this time of year.Read more
Business October 2, 2011
During the months of July, August, and September business growth in the UK financial industry rose at the slowest pace since last year, and for the first time since March 2009 sentiment is dropping, according to recent surveys.Read more
Economy September 27, 2011
In a statement to Reuters, a spokesperson for the Confederation of British Industry said that it would be a mistake to hastily print more money in a second round of quantitative easing (QE2) because there is still a risk of inflation. The biggest lobbying group for business believes that the central bank should not fall prey to the political pressure being placed on it to print money or a new stimulus.Read more