2011.03.0623:48:00UTC+00British Manufacturers Expect Output, New Orders To Grow: EEF

British manufacturers expect output as well as new orders to increase in the coming quarter, according to a survey conducted by the Engineering Employers' Federation.

Robust output and orders over the last three months contributed to the strongest four-quarter period in the survey's history, the EEF-BDO LLP 'Manufacturing Outlook' survey showed Monday. Consequently, investment and recruitment intentions came in at record levels.

A strong balance of 28% of companies expects output to rise in the second quarter of 2011. At the same time, expectations for new orders hit a record high, with a balance of 33% of companies forecasting strengthening order books in the next quarter.

"However, the outlook for the rest of 2011 still remains uncertain as a number of economic headwinds persist and new geopolitical tensions add another layer of uncertainty to economic forecasts," said EEF chief economist Lee Hopley.

The survey showed that the balance of manufacturers expecting to raise prices in the domestic market in the next three months increased to 39% with manufacturers also expecting to see a corresponding improvement in margins.

The organisation forecasts 3.5% growth in manufacturing sector this year, while engineering is projected to grow by over 7%.