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Output and employment improve at smaller manufacturers ? CBI

Employment and productions have picked up at smaller manufacturers in the three months leading to January, the CBI confirmed yesterday.

The CBI’s latest SME Trends Survey reveals that 30% of the 366 respondents said the volume of output rose, and 17% reported a fall, giving a balance of +13%.

That was slightly weaker than expected (+19%) but stronger than the balance of +9% recorded in the previous quarter.

Output was lifted by an improvement in domestic orders growth, with 28% of firms reporting a rise in volumes, and 20% a fall, giving a balance of +8%.

Lucy Armstrong, Chairman of the CBI’s SME Council, said: “Manufacturing is one of the few bright spots in the economy and this survey underlines the important role of smaller firms in delivering growth and jobs.

“With domestic orders steadily improving and production rising, firms are increasing their headcount to keep up with demand. Despite this the CBI says firms are facing strong cost pressures, which are now feeding through to higher domestic and exported goods prices.”

These include unit costs increasing sharply again (+28%). Which has led to a noticeable rise in both average domestic prices (+6%) and average export prices (+9%).

This was posted in Bdaily's Members' News section by Ruth Mitchell .