LONDON (MNI) – UK manufacturing is strengthening with strong growth
in exports and with domestic orders rising for the first time in two and
a half years, the CBI’s latest industrial trends surveys reveals.
The CBI warned that output price inflation is accelerating and
profit margins are coming under pressure from higher costs. The CBI said
quarterly domestic orders rose to a net balance of 12% in the three
months to April, the first significant growth since January 2008.
An improvement in total orders was driven by strengthening overseas
demand, with a balance of 20% reporting a rise in export orders compared
to 3% in the previous quarterly survey.
The quarterly export balance was the strongest since July 1995.
However, the CBI said orders and output are recovering from 30 year lows
and order books are still below normal.
Firms expect strong growth in orders over the next 3 months, with
a balance of 20% expecting total orders to rise in the next 3 months.
Overall business confidence is improving, with a net 24% more
optimistic than in January. This is the sharpest improvement in optimism
seen since January 1994, but the CBI said cost pressures are increasing
and firms expect to raise their prices more rapidly in the next three
months with a balance of 16% predicting price hikes, up from 8% in
January.
–London bureau: 44 20 7862 7941; email: dthomas@marketnews.com
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