Britain manufacturers enjoyed their best order intake for nine years in the third quarter, according to the latest survey from EEF, the manufacturers' organisation.
However, despite being able to increase prices in some areas, the recovery in profits is being limited by a wide range of increasing cost pressures (oil, energy and raw materials) which continue to depress margins.
The survey, published by EEF in conjunction with RSM Robson Rhodes, also showed that investment levels picked up and are expected to increase further over the next year.
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