A survey carried out by the Confederation of British Industry (CBI) has revealed that optimism amongst small and medium-sized enterprise (SME) manufacturers rose considerably in the quarter to April 2021.
The survey, which polled 260 SME manufacturing firms, found that optimism rose at the fastest pace in seven years.
The CBI revealed that the volume of total new orders grew, but export orders were flat. Manufacturers expect output and domestic orders to bounce back in the next quarter, the CBI said.
Alpesh Paleja, Lead Economist at the CBI, commented: 'SME manufacturers are poised for strong growth and are sunnier in their outlook, consistent with the overall picture for the economy over quarter two.
'But not all is rosy: companies clearly remain under the cosh, with cost pressures mounting and raw materials shortages persisting thanks to COVID-related supply chain disruption.
'As the end of the re-opening roadmap hoves into view, manufacturers need clear guidance from government on the state of play beyond June, so they can plan, prepare and strengthen their supply chains – ensuring they can continue to operate safely and profitably.'