The latest data suggests that growth for the U.K. manufacturing may be slowing after a strong rebound in the first part of the year, while inflationary pressure continues to increase, according to The Daily Telegraph. On Tuesday, the Confederation of British Industry reported in its quarterly survey that manufacturing activity during the first three months of the year remained strong, although the balance of companies seeing a below-normal orders during April was -11, down from 5 in March. The drop defied economists’ forecast for a small decline to 3 to start the second quarter.
Chris Williamson, the chief economist of Markit, said, “The latest CBI survey for April shows an unwelcome picture, but one that is beginning to sound all-too familiar, of rising price pressures and fragile demand.” The survey found that price expectations with manufacturers were higher, moving to a 12-year high of 36 in April from a level of 33 previously. Output expectations remained high, but eased to 22 from 27 the prior month, while business optimism increased to 9 from 7 in March. The outlook for exports worsened to 6 from 18 previously.