23.04.201408:19:00UTC+00U.K. Manufacturers' Domestic Order Expectations Highest Since 1970

British manufacturers are upbeat about the next quarter, with growth expectations for domestic orders and output hitting the highest since the 1970s, a survey from the Confederation of British Industry showed Wednesday.

The quarterly Industrial Trends Survey also revealed that business optimism among manufacturers saw its sharpest improvement since 1973.

According to CBI, the order book balance rose to 21 percent in three months to April, the highest since 1995 and general business expectations climbed to 33 percent, the biggest since 1973.

However, the new orders balance for the month of April fell to -1 percent from 6 percent in March. Economists had forecast the score to rise to 7 percent.

For the coming quarter, firms forecast order book balance of 26 percent, which was the highest since October 1996. 41 percent of firms anticipate a rise in output volumes and 10 percent a fall, giving a rounded balance of +32 percent.

IHS Global Insight's Chief UK Economist Howard Archer said the survey indicates that the manufacturing sector is lined up for another strong performance in the second quarter after likely recording very healthy expansion in the first quarter.

The survey was conducted between March 24 and April 9 covering 405 manufacturing firms.