UK manufacturers expect new orders to grow at a faster pace in the next quarter, survey results from the Confederation of British Industry showed on Thursday.
According to the Industrial Trends survey results, a net of 22 percent said new orders grew in three months to October, which was slower than July's 48 percent.
Manufacturers expect total new orders growth to pick up next quarter, with the balance at 29 percent, driven by acceleration in both domestic and export order growth.
A net balance of 15 percent said output volumes expanded in three months to October compared to 16 percent in September. A net 33 percent expects output growth to accelerate substantially in the next quarter.
Looking ahead to the next three months, costs growth is set to speed up further, with both domestic and export price inflation expected to accelerate, the survey showed.
"From higher material costs to labour shortages, manufacturers continue to face a number of serious global supply challenges hampering their ability to meet strong demand, Anna Leach, CBI deputy chief economist, said.
Manufacturers are using key levers, such as hiring new workers and planning further investment in plant and machinery and training, to expand production. "But with both orders and costs growth expected to climb over the next quarter, we're not out of the woods yet," the economist said.
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