Fourth quarter growth set to be boosted by strong factories

MANUFACTURERS are recording some of the strongest growth on record this quarter, with output rapidly rising as order books are still filling up.

According to the Confederation of British Industry (CBI), output has held at the 18-year high recorded last month, with order books at a similar level.

The robust figures recorded suggest that British manufacturing will make another positive contribution to GDP in the final three months of the year.

Every trend recorded by the CBI had a positive reading, with export orders at their strongest level for two years. All the survey’s six indicators are above average, except for stock adequacy.

Despite the recent drop in inflation, expectations for output prices have reached their highest level since February.

“While risks remain in the Eurozone and beyond, this survey provides further evidence that the recovery is becoming more embedded,” added Stephen Gifford, the CBI’s director of economics.

Industry body EEF suggests that 2014 might be an even brighter year for the UK’s factories, projecting 2.7 per cent growth for the sector, a faster increase than the 2.4 per cent that is expected for the economy as a whole.