The number of people employed in UK factories has increased at its pace fastest in nearly half a century over the past three months, as manufacturers sought to deal with a surge in order books after the lockdown, the CBI said.
The grBusiness pressure oupe said that jobs, investment, production, costs and prices were all increasing rapidly in the period of strongest growth since the early to mid-1970s.
In its latest health check, the CBI said manufacturers expected production to increase at the fastest pace. fastest on record over the next three months, after all activity restrictions in England were lifted this week.
But he warned that the The industry was also facing strong cost pressures, with many of the 250 companies surveyed reporting a shortage of materials and labor skills.
In collaboration with another group of employers, Make UK, the CBIcalled on the government to rethink the self-isolation rules which prevented companies from working at full capacity.
Rain Newton-Smith , CBI Chief Economist said: “The record growth in manufacturing production volumes is further evidence that the UK industry is waking up from the economic ravages of the pandemic. Demand is growing rapidly, leading companies to hire more staff and plan new investments in plant, machinery and training. Encouragingly, manufacturers are expecting further record growth in production over the next quarter. "
The CBI 's Industrial Trends Survey reported new orders growing at their fastest pace since 1974, employment growing at its fastest pace since 1973 and cost pressures without precedent since 1980.
Newton-Smith said staff shortages were severe within manufacturing, with a skills shortage and the number of people isolated in sharp increase.
"Businesses have already suffered an extended period of inhibited demand, so it is essential that the government now take all possible measures to protect this upturn in demand. 'activity.
"In the short term this should mean an immediate overhaul of the self-isolation rules. A test and release system that allows healthy people to return to work would help, as would releasing double-bitten people from the obligations ofisolation. This would ensure that manufacturers can operate at full capacity and strive to capitalize on a rapid recovery.
Make UK, the body of manufacturers, said its survey showed 77%. of companies were affected by testing and traceability, 13% said part of production had been stopped and a quarter said up to 10% of staff were isolated, with almost one in 10 declaring that up to 25% were on sick leave.
Ben Broadbent, Deputy Governor of the Bank of England and member of monetary policy committee , said on Thursday that he expected a recent increase in the price of goods to be temporary and wages would provide a better guide to whether action would be needed to bring it under controlrl 'inflation.
"While we know this will go further over the next few months, I am not convinced that current inflation n in retail property prices should in itself mean higher inflation 18-24 months ahead, the most relevant horizon for monetary policy, "said Broadbent.
" The outlook for aggregate demand growth still matters. And for all the usual reasons and more, the MPC will need to pay very close attention, best analyzing official data, to market figures work. ”
Broadbent is the latest MPC member to donate his opinions on inflation - currently 2.5% - before a committee meeting earlier this month next.
The Office for National Statisticsa said his summary of the most recent economic indicators showed an increase in retail footfall since early June, more vacancies, but credit card payments and flow rate down. The figures were for the period leading up to the lifting of restrictions this week in England.