UK manufacturers have reported an encouraging improvement in total and export order books in February, following a much weaker period over late 2011.

UK manufacturers have reported an encouraging improvement in total and export order books in February, following a much weaker period over late 2011.

As a result, firms expect solid output growth over the coming three months, according to the Confederation of British Industry’s (CBI) most recent monthly Industrial Trends Survey.

Of the 471 manufacturers responding to the survey, 21 per cent report total order books to be above normal, while 23 per cent say they are below, with 54 per cent seeing no change. The resulting rounded balance of -3 per cent is well above the long-run average (-18 per cent) and a significant improvement in the levels of recent months.

Export orders also see a similar upturn, with 22 per cent of respondents stating that levels are above normal and 24 per cent saying they are below, giving a balance of -2 per cent, compared to the long-run average of -21 per cent.

As a result of the improvement in orders, for the second month running UK manufacturers expect production to rise over the next three months, with a balance of +15 per cent expecting an increase in their volume of output.

CBI Chief economic adviser Ian McCafferty says, 'The improvement in manufacturing conditions seen in January has been sustained this month. Both domestic and overseas demand have strengthened, underpinning solid expectations for output growth, which is encouraging news, given the particularly difficult period for business in the final quarter of 2011.’

See also: Keeping your books in order