UK output surges as order book hits 29-year high

BRITAIN’S factories are benefiting from an export boom as the weak pound and demand from the strong eurozone economies leave manufacturers with the biggest order books since 1988.

Output is surging as a result, making manufacturing a strong point in the UK’S relatively sluggish economy, the figures from the Confederation of British Industry indicate. Its survey found 42pc of manufacturers increased output in the past three months while just 11pc said it was down. And 28pc said total order books are busier than normal compared with 11pc who said orders fell on the quarter.

A separate annual survey from the CBI and Pertemps Network Group found businesses across the economy are planning to hire more workers next year. Just over half (51pc) plan to increase their headcount, continuing to drive Britain’s jobs resurgence which has taken unemployment down to its lowest level since 1975.

“Britain’s record on job creation is second to none, and this year’s survey shows that this is set to continue in 2018,” said Neil Carberry, the CBI’S managing director for people policy.

The strong jobs market is helping to alleviate some of the pressure on strained family finances.

Households are still under the cosh, according to IHS Markit’s household finance index but the intensity of the pressure has eased. The index rose from 43.5 in November to 43.9 in December, firmly above the three-year low of 41.8 recorded in July.

The index shows finances improving when the score rises to above 50 and deteriorating below that level.