2012.04.2507:49:00UTC+00U.K. Manufacturers Forecast Output To Grow: CBI

Manufacturers in the United Kingdom expect production to improve significantly over the coming three months, a survey carried out by the Confederation of British Industry (CBI) showed Wednesday.

The monthly Industrial Trends Survey showed that a balance of 24 percent of respondents expects the volume of output to grow over the next three months, higher than 15 percent recorded in the previous survey.

The balance of manufacturers expecting an increase in new orders in the next quarter was 24 percent in the April survey, which showed a significant improvement compared to the previous survey when the balance was -2 percent. The balance of manufacturers expecting an increase in export orders was 23 percent, while that for domestic orders came in at 17 percent.

In the three months to April, the balances of firms reporting an increase in orders and output volumes were 8 percent and 5 percent respectively, signaling that the manufacturing sector is showing signs of bouncing back from the fragile conditions seen at the end of 2011 and start of 2012.

"With the acute fears over Europe and global demand subsiding somewhat since the start of 2012, sentiment about the general business situation has risen among manufacturers for the first time in a year, CBI chief economic adviser Ian McCafferty said.