FXstreet.com (Barcelona) - Higher costs on energy and raw materials are starting to reflect into industrial prices, as manufacturing output declines, and domestic orders fall considerably, according to the latest report by the Confederation of British Industry.

Domestic prices have risen at a balance of +21%, the largest increase since the +29% posted in April 1995, export prices have risen at a balance of +12%, and average unit cost has been reported up in the last three months by a balance of +50% of the surveyed firms, while +10% reported decline in unit costs, which gives a balance of +40%; the highest since June 1990.

Manufacturing output has grown below expectations on the month, a balance of -3%, and orders have tumbled; domestic orders have posted a -13% balance, while export orders fell to -5%. Total order books have shown a -13%, the lowest reading since the -20% in October 2006.