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CBI hails fastest manufacturing output rise in 15 years

UK manufacturing output rose at the fastest rate for 15 years in the last quarter but is set to slow down in coming months, the CBI has said.

The CBI's latest Industrial Trends Survey found that 38% of the 439 manufacturers that took part said output rose by 38% while 15% said it declined.

The balance of 24% is the fastest growth rate since April 1995.

Chief economic adviser Ian McCafferty said: "With demand for UK-made goods at home and abroad having strengthened, manufacturing production really stepped up a gear during the past three months.

"Output was also boosted by firms taking action to rebuild stocks."

McCafferty said that output would continue to rise in the coming quarter, albeit at a slower rate and that the CBI felt there was a "low risk of a double-dip recession".

Sentiment about the overall business situation and export prospects was continuing to improve, while firms expect staff numbers to remain unchanged in the coming quarter.