Booming demand for electronics and machinery have helped trigger a manufacturing bounce-back, CBI saysLast week outgoing CBI president Paul Drechsler (pictured) said that parts of UK manufacturing risked becoming extinct unless the country stays in a customs union

 

By JAMES BURTON FOR THE DAILY MAIL

  • Confederation of British Industry said export orders are at above average level
  • Factory output is growing at its fastest pace since December, their survey said
  • The fall in the pound after Brexit vote makes our products more internationally competitive

Booming demand for electronics and machinery have helped trigger a manufacturing bounce-back, suggesting the economy is picking up.

Factory output is growing at its fastest pace since December, according to a survey by the Confederation of British Industry (CBI).

Export orders are holding steady at well above average levels, the CBI added – in line with their performance for the past 16 months – as the fall in the pound after the Brexit vote makes our products more internationally competitive.

Last week outgoing CBI president Paul Drechsler said that parts of UK manufacturing risked becoming extinct unless the country stays within a customs union, which would likely leave us following rules laid down by Brussels.

Last week outgoing CBI president Paul Drechsler (pictured) said that parts of UK manufacturing risked becoming extinct unless the country stays in a customs union

Last week outgoing CBI president Paul Drechsler (pictured) said that parts of UK manufacturing risked becoming extinct unless the country stays in a customs union

Last week outgoing CBI president Paul Drechsler (pictured) said that parts of UK manufacturing risked becoming extinct unless the country stays in a customs union

He had previously urged chief executives to use clout to turn the public against Brexit.

But the latest figures were welcomed by the business group’s own economists, who said it suggests a temporary pause in growth appears to have come to an end.

Anna Leach, CBI head of economic intelligence, said: ‘The recovery in orders and a return to bumper growth in production suggests the lull in manufacturing activity may be over.’

The survey of 388 manufacturers found a third reported above-normal order books, while 20 per cent said orders were lower than usual.

And 43 per cent said output had risen in the three months to June, against 13 per cent who said it had fallen.

Companies are also less concerned about inflation, with fears over price rises close to their lowest in a year.

 

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