OPTIMISM IS UP AMONG UK MANUFACTURERS, BUT SCRATCH BELOW THE SURFACE OF THE DATA AND BUSINESSES ARE STILL STRUGGLING. ACBI survey of 279 SME manufacturers has reported that optimism about the business situation rose at the strongest pace since April 2014 in the quarter to January. The upward swing in growth from the previous quarter was the largest improvement in optimism in a single quarter in the survey's history (since October 1988). Optimism about export prospects also rose for the first time since July 2018. However, output volumes and domestic orders fell in the three months to January, while export orders were flat. But output and domestic orders are expected to grow in the quarter ahead. Chiming with the weak activity this quarter, numbers employed fell (at a similar pace to the previous three months) and are expected to remain flat in the next quarter. Investment intentions for the year ahead improved across the board. Spending plans for buildings, plant and machinery, and product and process innovation all rose above their long-run averages, though point to only flat or slightly higher capital spending in the next twelve months. Furthermore, SME manufacturers still expect to cut back on investment in training and retraining, where investment plans remain below historic norms. Labour shortages rose further as a cited constraint on capital spending, reaching another survey high.
展开▼
