Mechanical engineering leads record UK manufacturing demand
20 Feb 2017
Demand for UK-manufactured goods reached a two-year high in the last quarter to February 2017, says a report by the Confederation of British Industry.
The CBI’s Industrial Trends Survey says that the mechanical engineering sector led the growth in demand, alongside metal products.
However, of the 471 firms questioned for the report, the largest portion expected prices will rise in the next three month period – aided by the weakness of the pound, which will add to the cost of raw materials.
The business association is expected to use the findings to lobby government to provide more stimulus for companies in the forthcoming budget which is announced next month.
With cost pressures building, businesses will be looking to the Budget for relief
Rain Newton-Smith, chief economist, CBI
CBI Chief Economist, Rain Newton-Smith commented: “With cost pressures building, businesses will be looking to the Budget for relief from business rates.
“Over the longer term, investment in education and innovation as part of the Government’s industrial strategy will really need to deliver in the face of increasing political headwinds.”