Worrying signs of a slowdown in UK manufacturing after a strong performance earlier in the year have emerged from the latest CBI survey.
It shows order levels weakened in April, with 31% of firms reporting order books below normal against 21 per cent above normal.
This contrasts with a positive balance in March. Despite this the CBI said the manufacturing recovery was "firmly on track” and that data for the past three months showed rising output.
Of 451 firms responding to its survey, 36% said output had risen over the three-month period, with 15% saying it had fallen.
The survey shows orders at home and overseas increasing at their fastest rate since 1995, with exports helped by the weak pound.
Manufacturers are also restocking at a rapid rate after running down inventories over recent years while more are recruiting than shedding staff.
However, the CBI also found that inflationary pressures continue to build as companies seek to pass on soaring raw material costs while some businesses are warning they will soon reach capacity if demand continues to grow.
The CBI's head of economic analysis, Lai Wah Co, said: "Perceptions of order book levels have dipped in the monthly data, but the readings are still above the long-run average.
"The quarterly questions show that manufacturing orders have risen strongly over the past three months and output growth remains robust."
May’s edition of Swindon Business News includes a focus on the strengths and weaknesses of the town’s manufacturing industry and the opportunities and threats it faces.
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