LONDON, June 22 (Reuters) - British manufacturers reported
the strongest growth in output on record but also expect to
raise their prices at the fastest pace in nearly 40 years,
according to a survey which adds to signs of growing inflation
pressures.
The Confederation of British Industry's monthly index for
industrial output growth over the past three months was the
highest since the CBI records began in 1975 at +37, helped by
the lifting of coronavirus restrictions.
The CBI's orders balance - measuring the difference between
the proportion of employers who say order levels are above or
below normal - hit +19 in June from +17 in May, its highest
since 1988.
Economists polled by Reuters had expected a reading of +18.
"Encouragingly, this performance is reflected in the
majority of manufacturing sub-sectors and looks set to continue
in the coming quarter," Anna Leach, the CBI's deputy chief
economist, said.
"However, supply shortages continue to bite, and firms
expect that to push through into prices in the months ahead."
The survey's price balance rose to +46 from +38 in May, the
highest since 1982 and well above its average of +3.
(Reporting by William Schomberg, editing by David Milliken)