FXstreet.com (Barcelona) - Orders for manufactured products have increased in March despite the global economic slowdown, thanks to increasing overseas demand, most manufacturers have shown intentions to push prices up, which will translate into additional inflationary pressure, according to data released by the Confederation of British Industry.
In march, the percentage of firms reporting orders volume above normal increased to 26%, up from 19% in February, which showed a balance of +7 among firms whose orders have increased compared to those with unchanged or declining volumes of orders. The balance has increased from +3 in February.
Remarkable was the jump of orders in the textile sector, with a balance of +20 reporting orders above normal, up from a balance of -35 on the previous month. Chemicals and food manufacturers also reported increase in orders. The outlook for the next months has also turned brighter, as the balance of firms expecting an increase in output has risen to +18, the largest increase since the +25 in June.
On the negative side, a balance of +25 reported their expectations to put prices up over the next three months.