Manufacturers report rising costs

21 June 2011 Last updated at 11:37 GMT High commodity and import prices mean most UK manufacturers expect to raise their prices UK manufacturers have said they faced rising price pressures in June, but order books were better than expected.

Of the firms in the CBI's latest industrial trends survey, 27% more predicted rising prices than falling ones, up from 24% a month ago.

Meanwhile, a slim majority said orders were better than normal, with the 1% positive balance beating market expectations of a -5% figure.

"Inflationary pressures remain acute," warned CBI economist Ian McCafferty.

"High commodity prices and import costs mean firms still expect to raise factory gate prices markedly over the next three months."

Expectations for future order growth also moderated slightly, according to the survey, but remained positive.

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