British industry’s output now at record growth levels

Reopened economy brings warning of prices rising at fastest pace in almost 40 years

British factories enjoyed the strongest growth in output on record in June but warned they expected to raise their prices at the fastest pace in nearly 40 years in response to a shortage of key components and materials.

The Confederation of British Industry said its quarterly survey of manufacturing showed that the rebound across the sector was gaining momentum going into the autumn.

Related: UK government borrowing eases as recovery helps tax take