Output on the increase

Manufacturers expect their factory output to increase in the Spring as order books continue to fill, according to the CBI's manufacturing snapshot for March.

In the monthly Industrial Trends Survey, 18 per cent of manufacturers reported their order books were 'above normal' compared to 34 per cent who said they were 'below normal.' The balance of minus 16 per cent is the most upbeat since March 2005 (-13%) and an improvement of 12 points since January. This has been driven by strengthening domestic demand supporting the improvement in export orders in the last quarter of 2005.

As a consequnce manufacturers' expectations for growth are improving. A balance of plus 13 per cent expect output to rise over the next three months, the highest since February 2005 (+19%). It is also well above the survey average of plus eight per cent since the manufacturing sector pulled out of recession in the early 1990s.