–Adds Detail To Version Transmitted At 1104 GMT
–UK CBI Monthly Trends: Jan Total Orders -16% vs -3% in Dec
–UK CBI Ind. Trends: Jan Output Volume +17% vs +13% in Dec
–UK CBI Ind. Trends: Jan Average Prices +31% vs +16% in Dec
–UK CBI Ind. Trends: Jan Export Orders 0% vs +4% in Dec
–UK CBI Trends: Jan Quarterly Business Optimism +7% vs +2% Oct
–UK CBI Jan Quarterly Volume of Expected Output +17% vs +18% Oct
–UK CBI Jan Quarterly Expected Domestic Prices Next 3m +31% vs +6% Oct

London (MNI) – The UK’s manufacturing sector recovery has continued
but price pressures have intensified, according the latest CBI monthly
and quarterly surveys.

The January monthly survey showed output volumes rose to a net 17%
from 13% in December, but average prices rose to a net 31% from
December’s 16%, hitting their highest level since August 2008. The
quarterly survey also showed a surge in expected prices, with the
balance rising to 31% from 6% in the previous quarterly survey in
October.

The number of jobs in the industrial sector continued to pick-up,
with the quarterly employment balance for the past three months showing
a net 8% of respondents said staff numbers were up, the highest outturn
since January 1989. The pace of growth in jobs is expected to slow,
however, with only a net 2% expecting a rise in headcount in the next
three months.

Manufacturers are upbeat about export prospects. A net balance of
18% of firms expected export orders to increase, while domestic orders
are, on balance, expected to fall with a net -3% outturn.

Ian McCafferty, the CBI’s chief economic adviser, said “The
recovery in the manufacturing sector is firmly in place and looks set to
continue. Production has been boosted this quarter by a strengthening in
domestic and overseas demand and, over the next three months, companies
expect further growth driven by another rise in export orders.”

“But manufacturers have come under intense pressure to pass on
rising costs; they have increased prices markedly in this quarter and
expect to raise them at an even faster pace over the next three months.
This will drive further inflationary pressure in the wider economy,” he
added.

There were some weak spots in the data. The January monthly total
orders balance fell to -16% from December’s -3%. but the quarterly
survey showed that on balance respondents expected output volumes to
rise over the next three months, with a net 17% forecasting an increase.

–London bureau: 44 20 7862 7491; email: drobinson@marketnews.com

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