UK manufacturers maintained record growth rates in February as demand grew from both home and export orders.
The monthly purchasing managers' index from Markit and the Chartered
Institute of Purchasing and Supply (Cips) held steady at 61.5 points –
its highest level since the survey began in 1992 – where any figure
above 50 indicates an expansion in demand.
Many companies are now looking to increase staffing levels as confidence coninues to rise in the sector.
Many engineering companies have reported that that although the short
term outlook is good, many are still lacking longer term order books.
David Jennings from Qimtek, explains, 'Purchasing Buyers have been
erring toward smaller batch work although now this stock rebuilding is
drawing to a close. It has put pressure on SMEs as they have been
continually busy'.
He added, 'It's all well and good for the shorter term but many of these
businesses could see a return to 'peaks and troughs' economics they've
seen in the past - so called 'hand to mouth' working'. 'What they mostly
want are longer term, more secure contracts but they just haven't had
the time to find them'.