British manufacturers expect output and new orders growth to firm up and exports are forecast to grow at the strongest pace since July 2014, the quarterly Industrial Trends Survey from the Confederation of British Industry showed Monday.
However, the number of firms highlighting orders or sales as a possible constraint to activity rose to its highest level since October 2013.
A balance of 22 percent expect total new orders to increase in the coming quarter, the highest since July 2014. About 29 percent of firms anticipate a rise in output volumes, and 13 percent a fall, giving a balance of 16 percent.
In three months to April, the balance of firms reporting an increase in order books was at 13 percent. At the same time, the sluggish balance for export orders was at 4 percent, unchanged from January’s quarterly survey.
For April, the order books balance came in at 1 percent, within in the normal levels. Export orders were below par at -11 percent.
“Exports keep dragging at the heels of growth: firms are finding the recent rise in the pound against the euro challenging, making them less competitive in Europe, while the unravelling situation in Greece is creating uncertainty,” Katja Hall, CBI Deputy Director-General, said.
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