U.K. manufacturing output growth accelerated in the three months to November, benefiting from strong demand that continues to be supported by global growth and the lower level of sterling, according to the Confederation of British Industry's monthly industrial trends survey.
Manufacturing orders were the strongest for nearly 30 years, particularly due to improvements in food and drink, and chemicals. Export order books rose to their joint highest level in more than 20 years, strengthening notably in chemicals, electronics and transport goods.
"Nonetheless, uncertainty continues to hold back investment and cost pressures remain strong. Manufacturers will be hoping the Budget brings some relief from the business rates burden in particular," said Anna Leach, CBI head of economic intelligence.
In a survey of 397 manufacturers, 27% expect output growth to accelerate in the coming quarter, and 14% expect a decline. The percentage of firms expecting average selling prices to increase in the next quarter was 19%, with only 2% expecting a decrease, resulting in a balance of 17% that is significantly above the long-run average of 2%, the CBI said.
