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UK manufacturers expectations for output growth are at their strongest for a year, but firms also expect to have to raise prices significantly, says the CBI. Of the 436 manufacturers responding to the latest CBI monthly Industrial Trends Survey, 39 percent believe that output would rise in the next three months, while 15 percent expected that it would fall. The resulting balance of +24 percent is the strongest since March 2011 (+27 percent).

Sentiment among UK manufacturers deteriorated in the past three months, as confidence was hit by stagnant output, falling demand and concerns over exports, says the CBI. However, a slight rise in export orders and modest growth in output are expected in the next three months. Of the 387 manufacturers responding to the latest CBI quarterly Industrial Trends Survey, 27% said output rose, while 26% said that it fell.

According to the CBI, government and industry need to work better together to tackle barriers to using fewer resources, achieve greater efficiencies and encourage businesses to come up with solutions. Businesses are increasingly seeking to improve their resource efficiency, in both man-made and natural materials, because it offers them a competitive advantage and reduces their dependence on volatile prices and supplies of global resources.

Sentiment has fallen sharply among the UK's small and medium-sized manufacturers, as firms predict a slight decline in production over the next three months, the CBI reports. Of the 412 respondents to the CBI's latest quarterly SME Trends Survey, 27% said that domestic orders rose in the three months to October and 27% said that they fell - the resulting balance of 0% was the lowest since January 2010 (-10%).

UK manufacturers predict that production will continue to grow over the next three months, despite order book levels slackening during September, the CBI reports. Of 470 manufacturers responding to its latest monthly Industrial Trends Survey, 22% described total orders as above normal, and 31% said they were below. The resulting rounded balance of -9% indicates order book levels slipped back in September, though this measure remains well above its long-term average (-18%).

As over a million young people await their A level and GCSE results, the CBI has called for all young people who achieve good grades in science at age 14 to be automatically enrolled onto triple science GCSE. As the economy gears up for growth, businesses will require employees with science degrees. But over 40% of companies say they are having difficulty recruiting people with science, technology, engineering and maths (STEM) skills.

Launching its latest Climate Change Tracker on Wednesday June 8, the CBI said the government had set the wheels in motion in a number of key areas, including providing more clarity on Climate Change Agreements and funding for the Green Investment Bank. But it warned that investor confidence remains low, with the UK falling from 5th to 13th in a global ranking of low-carbon investment.

The manufacturing recovery is firmly on track and looks set to continue, the CBI reported on Tuesday April 26. Strong domestic and export orders growth has boosted factory output. But inflationary pressures continue to intensify as companies pass on the burgeoning cost of raw materials by raising the price of goods at the factory gate, according to the UK’s leading business group.