Manufacturers expect production to rise solidly in the next three months on the back of strengthening demand at home and abroad, the CBI has said.
The Confederation for British Industry’s latest monthly Industrial Trends Survey revealed that 32 per cent of manufacturers are predicting a rise in output in the coming quarter and 19 per cent a fall.
Total order books continued to strengthen, with 27 per cent of firms reporting they were above normal in December, and 31 per cent below.
Overseas demand accounted for much of the improvement in total order books. Of the respondents, 25 per cent reported export order books to be above normal, and 21 per cent below.
Ian McCafferty, CBI chief economic adviser, said: “These figures show that the recovery in the manufacturing sector is well underway. With total order books getting back to normal levels and overseas demand particularly strong, the outlook for UK manufacturing output growth is encouraging. The past sharp depreciation of sterling should continue to underpin demand for UK exports into 2011. However, with oil and other commodity prices rising, cost pressures will remain a concern.”
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