Survey reveals small manufacturers expected to raise output

| November 1, 2010
”Survey

According to a survey from the Confederation of British Industry (CBI), small manufacturers are expecting to increase production in order to meet higher demand.

The CBI survey, which questioned 382 businesses, established that a balance of 19% of firms expect to raise output - higher than the 9% balance in the previous three months,

According to Russel Griggs, chairman of the CBI’s SME council, manufacturers can expect a faster rise in production in the next quarter “as demand at home strengthens.”

Furthermore, the poll discovered that many businesses are expecting to hire staff due to a rise in demand.

A balance of 7% said they had recruited staff in the last quarter - the fastest rate of recruitment since April 2008.

The report comes on the same day that the Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) revealed UK manufacturing activity unexpectedly grew in October.

The closely-watched CIPS/Markit manufacturing PMI rose to 54.9 in October from 53.5 the previous month.

Meanwhile, the Office for National Statistics recently revealed UK economic growth for the third quarter slowed to 0.8%, albeit double the rate analysts had forecast.

The figures will reduce the chance of more quantitative easing (QE) from the Bank of England in the short-term.

Some have been calling for an injection of £50 billion via the Bank’s QE programme to boost the economy but recent data may mean the Bank will hold off for the short-term.

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