FXstreet.com (Barcelona) - The slowdown noticed in other sectors of economy does not seem to have affected the British industrial sector, as it enjoys the longest run of sustained demand seen in 12 years, according to the latest CBI Industrial Trends report.

In February's report, a balance of 3% of the surveyed firms reported an increase on orders from the previous month, which is higher than the balance of 2% posted in the previous month. This is the tenth month out of the latest twelve in which order books are so healthy, the strongest showing since 1995, according to the Confederation of British Industry.

This increase has been largely fuelled by the rise in demand for capital goods, with levels seen only once in the latest 20 years.

On the negative side, exports have weakened on the month, with 8% of the firms reporting export orders below normal.

On the outlook for the next quarter, 11% of the firms expect their output to grow in the next three months, although at a slower rate than in the first half of 2007, while a balance of 22% expect prices to increase over the next three months.