Manufacturers in the UK are optimistic about the future, reporting higher output and orders during the first two months of the year than in the final quarter of last year.
Manufacturers’ industry body, the EEF also reported that measures of recruitment and investment intentions were at the highest level ever recorded by the survey.
According to the report from the EEF, manufacturers were benefitting from a combination of strong UK sales and a boost in overseas trade, as well as from a more stable situation than has been seen for some time.
Output and order balances edged higher compared to the final quarter of 2013 to 22 per cent and 20 per cent respectively, with firms in the fields of electronics, motor vehicles and electrical equipment reporting the strongest positive balances.
The report added that this positive trend is forecast to continue in the next quarter, with output balances of 29 per cent matching the previous record high in the first quarter of 2004, while total orders expectations saw a more marked increase to 37 per cent.
More than 30 per cent of firms said they plan to increase employment in the next three months, which was well above the expectations of the last quarter, especially for larger companies. The broad based nature of growth was illustrated by the fact all sectors increased employment.
However, the organisation said that translating the intentions of firms to invest and hire more staff into action will be the ultimate test for long-term economic recovery.
Its Chief Economist, Lee Hopley said that the Chancellor must therefore gear his Budget this week to secure the best possible business conditions to support these investment and growth ambitions.