DIYWEEK.net

UK manufacturers have reported a marked improvement in activity in the three months to August, according to the CBI. Output in some sectors, including building materials and metal manufacture, was particularly strong.
Output growth has accelerated to its fastest pace in two years, according to the Confederation of British Industry's quarterly survey, and 37% of firms had reported rising output. Total and export order books had also risen to their highest levels since August 2011 and June 2012 respectively.

The survey of over 400 manufacturers found that many are now feeling slightly more optimistic. While output figures have been exceeding expectations, firms anticipate an even greater upturn in the coming three months, as output figures increase by 25%, resulting in the highest since March 2011.

12 of the 16 sub-sectors included in the survey reported a rise, while only two reported a decline. There was a particularly strong growth in some of the smaller sectors, including building materials, metal production and electrical goods. It is expected the building materials sector is due for another robust quarter as well.

However, manufacturers anticipate that output prices will be flat over the coming three months, the lowest since July last year.

Stephen Gifford, CBI director of economics, said: "Manufacturers have seen a real upturn in fortunes this quarter. Domestic and export orders have rebounded almost across the board, and manufacturers expect this strength to continue.

"UK manufacturers seem to be experiencing a build-up in momentum, but risks in the global economy still mean that it won't be plain-sailing for some time to come."