UK manufacturers enjoy strong order books but prices being forced up

CBI says fall in sterling since Brexit vote is pushing up cost of materials, with factory gate prices rising at fastest for two years

Britain's factories are poised to raise both output and prices over the coming months as they continue to adjust to the impact of the EU referendum in June.

The latest snapshot of the economy from the Confederation of British Industry (CBI) showed that order books for UK manufacturers are strong and production is expected to rise at its fastest pace in almost two years over the next three months.