Good factory stats point to UK recovery
BRITISH manufacturing output rose again in February and orders were at their strongest in six months, pointing to solid growth in the sector, according to the Confederation of British Industry’s (CBI) industrial trends survey, published yesterday.
A net balance of 15 per cent of respondents reported rising output, maintaining January’s healthy growth level.
Orders strengthened, with a net balance of minus three per cent reporting growth, up from minus 16 per cent in January and the highest level since August 2011.
Export orders also improved, with a balance of minus two, up from minus 26 last month.
“A buoyant CBI industrial trends survey provides further welcome evidence that the UK economy will avoid a slide back into recession,” said economist Chris Williamson from Markit.
“Manufacturers enjoyed a much better kick-off to the year than almost all had been anticipating.
“The data mean that the sector’s output stands a good chance of returning to growth in the first quarter, having contracted by a worryingly steep 0.9 per cent in the final quarter of last year,” Williamson continued.
A balance of 10 per cent of respondents reported average prices rising – down slightly from 13 per cent last month and raising hopes that inflation will keep falling.