British industry expands in quarter to May: CBI

Business | Economy 5/19/2017, 12:01 PM
British industry expands in quarter to May: CBI

Manufacturers in the United Kingdom reported the balance of total orders was 9% in positive territory this month compared to April, where 26% of respondents said they were above normal, the Confederation of British Industry said on Friday. Still, the results of the Industrial Trends Survey showed a deterioration in the level of contracts for shipments overseas, but the result still pointed to expansion – 10%.

In the three months ending with May, the measure of output landed at 28%, the highest since December 2013, with 41% of businesses increasing and 12% decreasing production. The total balance of orders in May came in at the highest level since February 2015 and compares to the long-term average of 15% under the neutral line. Expectations for output were 28% in the green, and for prices they were at 23%, after peaking at 32% in February. Stockpiles were reported by 16% as more than adequate against 12% as inadequate, leaving the reading at 4% above neutral.

"We have mounting cost pressures and expectations for factory-gate price rises are running high. Boosting productivity is key to alleviating some of the cost pressures that manufacturers are facing. Sustained investment in innovation and education will be vital to shore up the success of British industry," said Rain Newton-Smith, CBI's chief economist. Engineering and chemicals led the expansion in production volumes.

TeleTrader Newsroom / IT



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