The survey of 461 manufacturers reveals that the volume of domestic orders rose at the fastest pace since July 2014 in the three months to January, while export orders continued to grow, but below expectations. Headcount edged higher having dipped for the first time in more than six years in the last quarter.
Demand is expected to grow strongly over the next three months, driven by both domestic and export orders, while production is also expected to advance rapidly – expectations for output growth are also the highest since July 2014.
“UK manufacturers are firing on all cylinders right now with domestic orders up and optimism rising at the fastest pace in two years,” said Rain Newton-Smith, CBI chief economist. “The weaker Pound is driving export optimism for the year ahead, but is having a detrimental impact on costs for firms and ultimately for consumers.”
However, concerns continue over access to skilled labour with almost a quarter of respondents observing that skilled labour availability could limit output over the next few months.
