British's manufacturing sector is showing strong growth according to companies surveyed by the Confederation of British Industry.
ADVERTISEMENTBritish’s manufacturing sector is showing strong growth.
A monthly survey by the Confederation of British Industry (CBI) found output in the past three months rose by the most in more than three year with factory orders expanding at a fast pace.
The mechanical engineering and chemicals sectors particularly powered ahead.
#CBI survey shows robust #manufacturing activity in May with slight easing of #price pressures. https://t.co/z9G6HWayOA via
CBItweets</a></p>— Howard Archer (HowardArcherUK) May 19, 2017
“The summer sun has come out early for Britain’s manufacturers. Robust demand at both home and abroad is reflected in strong order books, and output is picking up,” the CBI’s director of economics, Rain Newton-Smith, said.
Firms also reported export order growth remained at a four-year high helped by the big fall in the value of the pound since year’s Brexit vote, though that is a mixed blessing as it also pushes up the cost of imported raw materials.
The CBI did say that companies remain worried about rising costs, and weak productivity. Many of the firms it surveyed had indicated they plan to put up prices in the near future which means consumers are under pressure from rising inflation.
“We have mounting cost pressures and expectations for factory-gate price rises are running high,” Newton-Smith, said.
Pricing pressures eased on their February peak, but remain strong. #CBI_ITS#UKmfghttps://t.co/avzHu4YDuqpic.twitter.com/R2T1n7vqHL
— CBI Economics (@CBI_Economics) May 19, 2017
