Its latest quarterly Industrial Trends Survey of 397 manufacturers found domestic orders improved at the fastest pace (+20%) since July 2014 in the three months to April, while export orders recorded the strongest growth (+22%) in six years.
The survey also found that 42% of businesses reported an increase in total orders, and 17% a decrease – giving a balance of +25%, while 36% of firms said the volume of output over the past three months was up and 14% said it was down – giving a balance of +22%.
In addition, the balance of employee numbers stood at +7%, and optimism stood at a rounded balance of +1%.
Other key findings show that firms’ competitiveness in the UK grew firmly over the past three months, while their competitiveness in non-EU markets rose at the fastest pace in the series’ history.
Meanwhile, average domestic prices, average export prices and average unit costs all rose at the fastest pace since April 2011 (+53%). CBI said that manufacturers intend to spend less on buildings and plant & machinery over the next 12 months than they did over the previous 12 months.
Rain Newton-Smith, CBI chief economist, said: “UK manufacturers are enjoying strong growth in demand from customers in the UK and overseas, and continue to ramp up production.
“Exports have surged and firms are at their most optimistic about selling overseas in over four decades. Even so, the combination of the weak pound and recovering commodity prices means that cost pressures continue to build, and manufacturers report no sign of them abating over the near-term.”
