Britain BOOMS back from pandemic: Manufacturing orders soar to highest level since 1977 with strong growth set to continue, finds CBI report
- Boom in orders as British industry hits highest growth measures in over 40 years
- Price expectations among manufacturers have also climbed to a 44-year high
- CBI deputy chief economist Anna Leach said: ‘It’s good to see output growth in the manufacturing sector holding up as we head into winter’
British industry has recorded a boom in orders this month with growth hitting its highest measure since 1977, as price expectations among manufacturers also climbed to a 44-year-high.
The findings emerged in a survey published today, which is likely to add unease at the Bank of England over rising inflation before the British central bank’s announcement next month about whether it is raising interest rates.
The monthly manufacturers’ order book balance of the Confederation of British Industry leapt to +26 in November, up from +9 in October, Reuters reports.
Workers assemble an aircraft jet engine at the Rolls-Royce aircraft engine factory in Berlin
These are far beyond the average forecast of +13 in a Reuters poll of economists and the highest reading since the CBI series started in April 1977.
CBI deputy chief economist Anna Leach said: ‘It’s good to see strong order books and output growth in the manufacturing sector holding up as we head into winter.
‘But intense supply side challenges continue to put pressure on firms’ capacity to meet demand.’
Meanwhile, Germany is facing an increased risk of recession this winter, even though the probability remains relatively low, according to the Macroeconomic Policy Institute (IMK).
The risk of recession in German rose from 12.6% to 17.7%, according to data shared with Reuters.
New lockdown measures have led Germany to shut restaurants, bars and gyms, while schools and shops remain open in a much lighter lockdown than seen in the spring.
The CBI’s measure of price expectations in the next three months climbed to +67 from October’s +59, the highest since May 1977 as stock levels of finished goods dwindled to the lowest on record, reflecting global supply chain problems and strong demand.
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