UK factories see fastest output growth on record, price pressure growing - CBI
Reuters
Published Jun 22, 2021 06:17AM ET
Updated Jun 22, 2021 06:31AM ET
LONDON (Reuters) - British manufacturers reported the strongest growth in output on record but also expect to raise their prices at the fastest pace in nearly 40 years, according to a survey which adds to signs of growing inflation pressures.
The Confederation of British Industry's monthly index for industrial output growth over the past three months was the highest since the CBI records began in 1975 at +37, helped by the lifting of coronavirus restrictions.
The CBI's orders balance - measuring the difference between the proportion of employers who say order levels are above or below normal - hit +19 in June from +17 in May, its highest since 1988.
Economists polled by Reuters had expected a reading of +18.
"Encouragingly, this performance is reflected in the majority of manufacturing sub-sectors and looks set to continue in the coming quarter," Anna Leach, the CBI's deputy chief economist, said.
"However, supply shortages continue to bite, and firms expect that to push through into prices in the months ahead."
The survey's price balance rose to +46 from +38 in May, the highest since 1982 and well above its average of +3.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.