Best output figures in factories since 90s

oUTPUT from British factories is growing at the fastest pace for more than 20 years as manufacturers predict an export boom, figures show.

In the last three months, production rose at the strongest rate since 1995 as optimistic bosses launch a recruitment drive, the Confederation of British Industry report (CBI) found.

Its survey also shows they are more confident about exports than they at any time in the last 40 years, as the weak pound boosts demand for UK goods abroad.

The upbeat report fuelled hopes that the economy has picked up pace following a slowdown at the start of the year. official figures will today show how the economy fared in the second quarter of 2017 after a modest 0.2 per cent growth in the first.

CBI chief economist Rain newton-Smith said: ‘output growth among UK manufacturers is the highest we’ve seen since the mid-90s, prompting the strongest hiring spree we’ve seen in the last three years.

‘Cost pressures are easing and firms are upbeat about the outlook for export orders. It’s great to see the benefits from the decline in sterling feeding through.’

Businesses are also stocking up on raw materials at the fastest rate since 1977 – a clear indicator they expect very strong order books in coming months.

The survey found bosses were more upbeat about domestic demand than at any time since april 2015, while expectations of export growth were the highest in four decades. and staff numbers climbed at their fastest rate since 2014.

But the CBI warned that the 13 per cent fall in the pound since the Brexit vote had driven up inflation for UK consumers, hitting household spending. But there are signs this in beginning to ease and experts said the economy remained strong.

Graham Toy of the national association of Commercial Finance Brokers said: ‘Today’s robust figures from the CBI show an economy that’s standing very firm in the face of continued political uncertainty. Exporters are having a field day.’