Demand for UK-manufactured goods strengthened in the three months to February, with total order books improving further. That’s according to the CBI’s latest Industrial Trends Survey.
The survey of close on 500 firms found that total orders reached a two-year high, with the strengthening in demand led by the mechanical engineering and metal products sectors in particular. Export orders remained stable, and at a level above the long-run average.
Output growth remained robust in the three months to February and is expected to increase at a faster pace over the coming quarter, with expectations at their highest since September 2013.
Firms expect prices to rise strongly over the next three months, with expectations at their firmest since April 2011, as Sterling’s depreciation continues to increase the basic cost of raw materials.