UK manufacturing orders reach their highest level in the last 30 years, according to monthly data from the Confederation of the British Industry (CPI). The statistics may encourage the British Central Bank to change interest rates, as the economy is performing better than expected after the Brexit and avoided the previously forecasted collapse.
The study among 464 manufacturers found that orders rose to the highest level since August 1988. Improvement was recorded in 13 of the 17 subsectors under review, headed by food, beverages, tobacco and chemicals. This talks about boost of the industry and growth of production, which is supported by cheaper export after depreciation of the local currency.
Export orders also show a rise to 22 years. The companies expect a robust rise in production over the next quarter.
However, the pressure on pricing remains strong. The manufacturers continue to expect a sharp rise in average sales prices in line with the level observed last month.
The survey shows that 27% of manufacturers report that total orders are above normal and 12% say they are below normal.