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UK manufacturers see rise in demand, says CBI

Published: 24 November 2010
Demand for UK-made goods improved in November, compared with the previous month, according to new figures released by the Confederation of British Industry (CBI) last week.
UK manufacturers see rise in demand, says CBI
The organisation said total and export order books improved relative to October, although they were still considered to be 'below normal'.

UK manufacturers expect modest growth in output in the next three months. In November's survey, 26% predicted output will rise, compared with 22% expecting it to fall.

Inflationary pressures have intensified for manufacturers, partly reflecting recent rises in oil and other commodity prices. A balance of 17% of firms expect to raise prices in the next three months, compared with 6% in last month's survey. However, said the CBI, this is more in line with expectations seen in September, when 15% of manufacturers expected prices to rise.

The CBI's chief economic adviser Ian McCafferty said: "Manufacturing demand improved in November, following October's more negative figures for total and export orders. Demand is now back in line with that over the summer months, suggesting that particularly weak order book readings last month may have been a one-off."

He added: "Factory output is still set to rise, albeit with modest expectations for growth compared with recent months, as the boost from re-stocking starts to fade. Inflationary pressures are a concern, with companies saying they will be increasingly forced to pass on at least part of their rising costs in the form of higher prices."

Last week, DIY Week published its annual Made in Britain supplement, which showed that 53% of UK retailers actively source British-made products.


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