The latest CBI Industrial Trends Survey shows that growth in the UK's manufacturing sector continued to strengthen, which is good news for machine builders and system integrators. According to the CBI survey, order books and output are at an 18-year high for the second consecutive month.
The survey of nearly 400 manufacturers found that both the size of total order books and the pace of output growth over the past three months were once again the highest recorded since 1995. Export orders also rose considerably, reaching their strongest level for 22 months, with the improvement mainly driven by the chemicals and motor vehicles and transport equipment sectors.
Growth in output volumes over the three months to December 2013 remained robust, with another steep rise across most sectors; 14 out of 16 sectors reported growth, with motor vehicles and transport equipment being the largest contributor.
Furthermore, manufacturers expect output growth to continue over the coming three months, albeit at a somewhat slower pace.
Stephen Gifford, the CBI's Director of Economics, comments: "The manufacturing sector is showing further signs of momentum with nearly all sectors reporting growth for a second month.
"Total order books and output growth have maintained the strong performance from last month, while export orders have also shown an encouraging upturn in fortunes.
"While risks remain in the Eurozone and beyond, this survey provides further evidence that the recovery is becoming more embedded."
The main points of note in the CBI survey of manufacturers are as follows:
Follow the link for more information about the CBI Industrial Trends Survey.