LONDON, MNI – UK manufacturers predicted strong increases in
production but point out that inflation pressures on them have also
picked up, according to the latest CBI manufacturing survey.
The CBI said that manufacturing expectations for output growth are
at their strongest in a year but firms also expect to have to raise
prices significantly.
Ian McCafferty, CBI chief economic adviser, said “…expectations
for output price inflation have also moved higher, most probably
reflecting the recent rise in oil prices”.
He continued:
“Any further rise in oil prices would be a significant concern,
given the additional cost burden this would place on UK manufacturers
and the knock-on effects it could have on the nascent recovery”.
–London newsroom: 207 862 7492; e-mail: dthomas@marketnews.com
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