UK industry is on a roll – but inflation could send it on the slide | Larry Elliott

The latest figures suggest a rosy outlook for manufacturing, but rising costs indicate there may be troubles ahead

It's looking good for Britain's long-suffering manufacturers. Order books are strong, the global economy is picking up and the weakness of the pound is making exports more competitive. Industry is on a roll.

Well, maybe. Nobody likes to be a party pooper but we've been here before. Many times before, in fact. Over the past four decades there have been periods - sometimes quite lengthy periods - when it has looked as if a new dawn is breaking for manufacturing. Yet the promised renaissance has never happened.

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