UK manufacturers see rise in output

Manufacturing production in the UK is rising at its fastest pace in 15 years, figures released by the Confederation of British Industry (CBI) show.

The CBI's total order balance rose from -23 to -16 in June, reaching their highest levels since August 2008. The figures indicate that although the number of orders are continuing to fall, they are doing so at a much slower pace.

A separate poll conducted by the CBI indicates that in the three months to July, production rose at its fastest rate since April 1995, with output increasing from 1 to 24.

CBI chief economic adviser Ian McCafferty, was cited in The Guardian as saying: "With demand for UK-made goods at home and abroad having strengthened, manufacturing production really stepped up a gear during the past three months."

According to McCafferty, those working as a label manufacturer, that may have feared a double dip recession have no need to worry, as manufacturers remain optimistic about the next three months. Ten per cent of those surveyed described themselves as more optimistic about conditions than they had been three months ago.

"Looking ahead production is expected to rise further, but at a more moderate rate. In our view the risk of a double dip recession remains low and the fortunes of the manufacturing sector are continuing to slowly and steadily improve," McCafferty added.

Manufacturers also appear to be preparing for a further rise in production, with 11 per cent more employers stating their stocks of raw materials are increasing as opposed to falling. Three per cent of manufacturers said their stocks of work in progress were also rising instead of falling, which is the first time the indicators have been positive since 2009.

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