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Manufacturers predict next quarter growth

Manufacturers are anticipating strong growth over the next quarter, according to the latest trends survey from CBI.

Despite a rise in confidence, the 404 responding firms said output growth was fairly stagnant over the first quarter of 2013, which was another blow to previous predictions of growth.

Outlook remains positive for the next three months however, with output volumes expected to grow, and 12 out of 16 sectors predicted to pick up.

These sectors include food and drink, tobacco, mechanical engineering, all of which are expected to significantly contribute to growth.

Total orders and export orders rose slightly, and were largely in line with their long-term averages.

Anticipated price inflation has fallen back down to its lowest since last September, as announced by the Office of National Statistics this week.

Stephen Gifford, CBI director of economics, said: “Manufacturers remain optimistic that demand will pick up in the next three months, despite a recent history of disappointed expectations.

“This tallies with what we’re hearing from some businesses about confidence returning.

“With orders improving and the global economy heading for calmer waters, it looks like conditions for manufacturers may be on the up.”

This was posted in Bdaily's Members' News section by Miranda Dobson .