CBI: Exports begin to take off

The Confederation of British Industry (CBI) reported a good output rise this summer, with demand favouring UK-made goods.

In the three months leading to July, manufacturing sector production rose at its fastest rate in 15 years, which may indicate the beginning of a firmer recovery for domestic industry.

Respondents to the Quarterly Industrial Trends Survey revealed that orders from within the British Isles had increased for 29% of firms, with only 19% reporting that internal demand had dropped.

Similarly, 28% of companies said that overseas demand had risen during the three-month period.

In contrast to the positive trends given by the CBI, the most recent Markit/Chartered Institute of Purchasing and Supply UK Services Purchasing Managers' Index suggested that austerity measures had negatively impacted upon business confidence.

CBI chief economic adviser Ian McCafferty acknowledged that the news was not all positive, saying that production was expected to continue to rise, but at a slower rate than in recent months.