Small manufacturers plan investment

The UK’s small manufacturers plan to boost investment over the coming year as total orders have increased in the three months to January.

According the CBI’s latest SME Trends Survey of 335 SME manufacturers, domestic orders rose, while export orders fell.

37% of firms reported an increase in total new orders while 23% noted a decreases - resulting in a balance of +14%.

Firms said they expected both domestic and export orders to rise in the coming quarter, and gearing up of production.

Headcounts at SME manufactuers grew below expectations, at just 4% rise. A moderate rise of 6% is expected in the coming quarter.

Stephen Gifford, CBI director of Economics, said: “As the recovery takes hold, the investment cycle is starting to turn.

“It’s encouraging to see smaller manufacturers planning to boost investment, particularly in their plant, machinery and buildings.

“Orders and output continued to grow at a healthy pace, although not as fast as predicted. However, firms remain optimistic about prospects, with growth in orders and production expected to accelerate.”