[ad_1]
Optimism in the Yorkshire and the Humber manufacturing sector has fallen, according to the CBI latest Quarterly Industrial Trends survey, sponsored by Accenture.
The report found that optimism fell more sharply in the region in the quarter to April than across the UK as a whole (-58 per cent from -4 per cent in January; UK balance was -34 per cent).
While total new orders in Yorkshire and the Humber rose at a similar pace in the three months to April compared with January (+24 per cent from +21 per cent), businesses in the region expect new orders to fall over the next three months (-28 per cent).
In Yorkshire and the Humber, average unit costs in the quarter to April grew at a historically strong pace (+92 per cent from +96 per cent in January), as did average domestic prices (+71 per cent from +67 per cent in January).
The survey also found that investment intentions for the year ahead in the region weakened across the board in April compared to January (buildings -31 per cent from -15 per cent; plant and machinery +1 per cent from +10 per cent, product and process innovation -3 per cent from +14; training and retraining -13 per cent from +13 per cent).
Output volumes grew over the quarter to April in Yorkshire and Humber (+11 per cent from +1 per cent in January) but are expected to be broadly flat over the next quarter (-3 per cent).
Helen Morgan, Leeds City Region lead for Accenture, said: “Yorkshire and the Humber has a rich manufacturing history and is at the cutting edge of innovation in the sector, but there is no question that there are challenging times ahead. Rising costs are taking a heavy toll and as we can see in the data, firms in the region expect order numbers to fall over the next quarter.
“To remain competitive and ensure that optimism rises once more, retaining, motivating and upskilling staff will be critical, as will be lowering process costs and making the supply chain as efficient as possible.”
[ad_2]
Source link
