LONDON (MNI) – The recovery in UK manufactured strengthened in
March, while price pressures remained intense, with firms expecting a
further rapid rise in output prices in coming months, the latest
Confederation of British Industry report showed.
In the March survey, 26% of manufacturers said total orders were
above normal and 21% said they were below, giving a balance of 5%, the
highest since March 2008. This was the first positive balance since June
2008.
Export order books weakened slightly with the balance of 5 down
from February’s 11, but remaining strong by historical standards.
Inflation pressures remained intense reflecting sharp rises in oil
and commodity. A net 33% of firms expected to raise prices over the
coming 3 months, up from 32% in February and 31% in January.
CBI Chief Economic Adviser Ian McCafferty said “The manufacturing
recovery is picking up pace with firms predicting robust output growth
over the next quarter. However inflationary pressures in the
manufacturing sector remain very acute as firms look to pass on sharply
increased raw material costs.”
–London bureau: 44 20 7862 7941; email: ukeditorial@marketnews.com
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