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Rise in orders gives a boost to UK industry

first_img KCS-content Rise in orders gives a boost to UK industry Share Tuesday 26 April 2011 8:05 pm FACTORY output in the UK is increasing and fewer firms are working below capacity, new manufacturing data showed yesterday.Output volumes and total new orders rose in the three months to April and are expected to continue increasing, the Confederation of British Industry’s Quarterly Industrial Trends survey found.But the soaring cost of raw materials pushed up unit costs, prompting firms to raise selling prices at the highest rate since 1995. Citigroup economist Michael Saunders said pressure on firms’ production capacity and rapid increases in selling prices were signs that manufacturers were “experiencing the biggest boom for many years”. In the three months to April, volumes of new orders rose at 36 per cent of companies while 15 per cent reported a fall, giving an overall balance of 20 per cent of companies reporting an increase in orders.In a sign that price pressures are continuing to build in the economy, both the monthly and quarterly price expectations balances in the CBI survey rose to +36 in April – their highest since January 1990. The number of companies working below capacity fell to 55 per cent, from 62 per cent a year ago, while 29 per cent of firms said lack of plant capacity could constrain their output in the coming quarter.But economists saw weakness in April’s monthly result, as a net 11 per cent of firms said order books fell. In March, five per cent reported a rise.“There are worrying signs from a slump in orders in April and ongoing price pressures,” said Markit chief economist Chris Williamson.New orders rose at a net balance of 20 per cent of manufacturers – those who said they rose minus those who said they fell. The same level of firms said output rose, up from eight per cent in January, while a net 22 per cent also expected output to continue to grow in the next quarter.Restocking of inventories saw stocks rise to levels not seen since 1995, and a net 15 per cent said they were hiring new staff.FAST FACTS | UK MANUFACTURING55 per cent of firms are operating below capacity, down from 62 per cent last April.29 per cent of firms feel lack of factory capacity will constrain their output next quarter.Selling prices rose at fastest rate since 1995. More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com whatsapp Show Comments ▼ whatsapp Tags: NULLlast_img read more