Investment up as manufacturers cash in on export boom
Britain’s factories are investing more in growth than at any point since 2014 as solid domestic demand and surging exports drive their expansions.
Sustained growth means manufacturers are butting up against capacity constraints to an extent not seen since 2007, the Bank of England’s agents found when speaking to firms around the country in February.
The businesses are also investing more in automation as the very low rate of unemployment means a skills shortage is biting. Companies reported recruitment difficulties are greater than at any point since 2004.
Services companies are also more confident with investment intentions back up to levels last seen in early 2016.