Small and medium-sized manufacturers have recorded the fastest pace of recruitment in the sector since records began in 1988.
The milestone is only one of the many positive factors currently contributing to the strong quarter posted by manufacturing SMEs in the UK.
According to CBI’s SME Trends Survey, the sector has experienced another strong quarter of orders and output growth in the three months to July.
Domestic orders and output both rose strongly, for the fourth consecutive quarter, and are expected to grow robustly again in the next three months.
Firms’ optimism about their general business situation also rose, but to a lesser extent than in the last quarter.
However, despite the rise in export optimism, export orders were broadly flat in the three months to July, disappointing expectations for a strong increase.
Nevertheless, firms expect export growth to pick up next quarter.
Smaller manufacturers plan to increase their investment in plant and machinery over the next year, while their expenditure on buildings is expected to stay broadly the same as last year.
Katja Hall, CBI deputy director-general, said: “Smaller manufacturers are settling into a regular growth pattern, with their order books and output growing for the fourth consecutive quarter.
“Firms remain upbeat about their business situation and they are hiring at their fastest rate since 1988.
“But export orders have underperformed this quarter, which may in part be because of the strength of Sterling.
“We need the Government to get behind our small and medium-sized manufacturers to help them to sell their products and services to new markets around the world, giving a sustainable boost to long-term growth.”
Key findings – three months to July
