Manufacturing production among small and medium-sized firms (SMEs) climbed at the quickest rate on record in the three months to July, according to a survey conducted by the Confederation of British Industry (CBI).
According to the CBI’s quarterly SME Trends Survey, total new orders climbed at the fastest rate on record, reflecting an increase in domestic orders. The survey also revealed that export orders grew at the fastest rate since January 2019.
According to the CBI, many SMEs anticipate robust output growth in the following three months.
“The economic recovery has given a significant boost to SME manufacturers, with firms reporting record growth in activity,” said Alpesh Paleja, Lead Economist at the CBI.
“Buoyant demand has led firms to kick-start their investment plans and increase headcounts. The outlook further ahead is also positive, as businesses expect activity to continue to grow strongly.”
“However, mounting staff shortages, rising cost pressures and shortages of raw materials due to supply chain disruptions are posing a real challenge to the outlook.”