Manufacturing confidence builds - CBI
UK manufacturers continue to expect strong output growth in the next three months, according to the CBI's latest monthly Industrial Trends Survey. However, firms in the survey found that output growth was broadly flat over the three months to May, again disappointing expectations for a more pronounced recovery.
The outlook, said the CBI, was again much brighter for the next quarter, with output volumes expected to rise strongly. Twelve of the industry's sectors anticipate a pick-up, with food, drink & tobacco, and mechanical engineering being the key contributors to growth.
Both total orders and export orders edged up a little and were broadly in line with their long-run averages. Meanwhile expected price inflation has fallen back to its lowest since last September.
Stephen Gifford, CBI director of economics, said the latest data tallied with anecdotal evidence from some businesses about confidence returning. "With orders improving and the global economy heading for calmer waters, it looks like conditions for manufacturers may be on the up," he added.
