UK factories expect strongest rebound since 1973 after COVID-19

UK factories expect strongest rebound since 1973 after COVID-19

LONDON - British manufacturers' hopes for an economic rebound rose to their strongest in 48 years this month as the country began to recover from the slump caused by the COVID-19 pandemic, the Confederation of British Industry said on Thursday.The CBI said its quarterly survey of manufacturers also pointed to a revival of investment and hiring plans and continued concerns about higher costs."Phased reopening has lifted the mood among firms, notably driving orders, employment, and investment plans," CBI chief economist Rain Newton-Smith said."However, rising costs are an increasing concern for many businesses, and seem to be putting upward pressure on prices as firms try to protect their margins."The CBI said its quarterly business optimism gauge, based on a survey of 288 manufacturers between March 24 and April 14, jumped to +38, the highest since April 1973, from January's reading of -22.Plans to invest in plant and machinery were the strongest since July 1997, with anecdotal evidence from firms that they had brought forward plans to take advantage of a temporary tax break announced by finance minister Rishi Sunak in March's budget."Manufacturers are much more optimistic about the future, now that Brexit is largely in their rear-view mirror and world trade