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Factory orders in decline but prices will rise

ORDERS reportedly dropped at their sharpest pace since April, but the economy will recover according to the CBI.

UK factory orders fell in January, but manufacturers plan to raise prices sharply in the next three months, according to the business group.

Its quarterly industrial trends survey of 394 manufacturers recorded a drop in its total order book balance to -16% this month from -3% in December.

Despite the drop, the CBI said “the recovery in the manufacturing sector is firmly in place”.

But it did warn that upcoming price rises would fuel inflation.

This was posted in Bdaily's Members' News section by Ruth Mitchell .