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UK Manufacturing Output Rises For First Time In Two Years - CBI

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U.K.'s industrial output rose for the first time in two years in the three months to January, as overseas demand for the country's products increased, the latest quarterly Industrial Trends Survey conducted by the Confederation of British Industry showed Thursday.

Of the 461 manufacturers surveyed, 31% said output rose during the three-month period, while 20% said it fell. The resulting balance of 11% is the strongest figure since January 2007, when the balance was 19%.

Export orders rose for the first time since January 2008, boosted by the relative weakness of Sterling and improving global demand, the business group said. 30% of firms said exports grew during the quarter, while 24% reported a fall, giving a balance of 6%. Exports are expected to grow more strongly in the next quarter and firms are most optimistic about export prospects for the coming year, since July 1995.

But, the CBI warned that the outlook for the sector remains uncertain, with domestic demand still weak, and some firms still struggling to access finance. The survey found 18% of manufacturers reporting a rise in domestic demand and 26% a fall, giving a rounded balance of minus 9%. That compared with a balance of minus 16% in October.

(Market News Provided by RTTNews)

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