British manufacturers' confidence boosted in April, and their output predictions achieved a six-month high, according to the latest quarterly Industrial Trends Survey results from the Confederation of British Industry revealed on Wednesday.
Business sentiment rose to +9 percent in the quarter leading to April, a significant recovery from -3 percent in January. Additionally, manufacturers' optimism about exports for the upcoming year also improved in April, with the index climbing to +6 percent, a sharp rise from -20 percent.
The survey also indicated a slower decline rate in new orders for April. The associated index registered at -6 percent, compared to -13 percent in January. With this trend, 8 percent more manufacturers expect a growth in orders in the following three months.
Survey respondents also reported a modest increase in output volumes in the quarter ending April, bouncing back from a downturn in the three months leading up to March. An 11 percent majority is hopeful of a further increase in volumes over the upcoming quarter.
In comparison to historical averages, average cost growth continues to remain high. The indicator measuring average costs per unit of output registered 39 percent, a slight decline from 43 percent in January. However, 42 percent more manufacturers anticipate an uptick in cost growth in the approaching quarter.
Finally, manufacturers have plans to ramp up investment in the upcoming year. The related index jumped to +15 percent in the quarter leading up to April, reaching its peak since January 2022.
"Conditions facing manufacturers have certainly improved, with a noticeable boost in sentiment and the strongest expectations for future output growth in six months," said Anna Leach, Deputy Chief Economist at CBI.
