Manufacturing Output Soars at Record Pace!
According to the CBI’s latest survey report, the 3 months to June 2021 saw manufacturing output record the strongest quarterly growth since its surveys were first conduced in 1975. Given the fact that some companies are still facing difficulties with such as materials and staff shortages, and with many not yet performing at pre-Covid levels, this latest result must be viewed with a great deal of optimism for forthcoming performance levels, especially with the prospect of the economy likely to be more fully re-opened w.e.f. 19th July! For more information on this subject please read the article below which appeared in The Daily Telegraph today.
Roger Mundy, Managing Director, Beardsley Theobalds, 23rd June 2021
Manufacturing Output Grows at Fastest Pace in 46 Years
Manufacturing output has soared at the fastest pace on record as the economic recovery took hold of Britain’s factories.
The three months to June were the strongest quarter since the CBI’s long-running survey began in 1975, driven by rebounding domestic and foreign demand. Output rose in almost every type of factory. Growth was strongest in motor vehicles and transport equipment, the business group said, as well as food, drink and tobacco.
Most businesses said output had risen over the past quarter, while one third said it held steady and just one in six reported a fall. It took the CBI’s output tracker to a positive net balance of 37, up from 18 in May, 3 in April, and negative territory for the entirety of 2020, including the pre-Covid months.
Companies expect the surge to keep growing, with a balance of 33% anticipating higher output over the coming three months. However, factories are also struggling with shortages of key components and skilled staff, according to Tom Crotty, group director at Ineos and chairman of the CBI manufacturing council, which could dent output and push up prices.
“The picture is not all rosy, with firms continuing to face difficulties arising from supply chain disruption and cost pressures. Staff shortages are also causing issues for many manufacturing businesses across the country,” he said.
Meanwhile companies are not all back to pre-Covid levels of output despite the recent surge, Anna Leach, economist at the CBI, said: “Businesses will be closely following the news on reopening, and will be looking to the Government to provide some clarity on longer term requirements on work-place testing and social distancing.”