Small British manufacturers continue to enjoy strong export order books, new data from IHS Markit’s manufacturing Purchasing Managers Index (PMI) has revealed.
The Index, which reveals that export orders gained further momentum throughout January among small and medium-sized enterprises (SMEs) in the manufacturing sector, echoes the findings of the Confederation of British Industry’s (CBI) latest SME Trends Survey.
Published earlier this week, the CBI’s quarterly report reveals that confidence in the manufacturing sector is “going strong” and that smaller firms in particular are “reaping the benefits of a lower pound and buoyant global growth,” according to CBI Principal Economist, Alpesh Paleja.
The survey of 339 SME manufacturers found that 43 per cent of respondents enjoyed an increase in total new orders in the final quarter (Q4) of 2017, while a further 36 per cent had to increase output in order to keep up with growing demand.
Additionally, the number of SMEs working below capacity during the period fell to its lowest since 1989 during the same period, the CBI’s figures reveal.
Despite this, Mr Paleja said that cost pressures were still putting strain on SME manufacturer margins – and that many businesses were expected to raise prices further in coming months.