Industrial output in the U.K. is expected to quicken in the first three months of 2011 despite increasing price pressure on manufacturers that could affect inflation for the economy as a whole, according to The Wall Street Journal. On Thursday, the Confederation of British Industry published the results of a survey that showed the industrial balance rose to 17 in January from 13 in the last month of 2010, indicating that more firms expect stronger output in the coming months than those looking for a slowdown.
The CBI’s survey also showed that price expectations for manufacturers are at their highest level since August 2008, with 31% more of those surveyed expecting to increase in prices than those expecting to lower them. CBI chief economic adviser Ian McCafferty said, “Manufacturers have come under intense pressure to pass on rising costs,” which he said is a trend that is expected to continue in this quarter and “will drive further inflationary pressure in the wider economy.”
