Conditions improve but outlook is uncertain.(U.K. Focus)(lyocell fiber )

The U.K. chemical industry started to recover in 2003 after a slight decline in the previous year, according to the latest forecast by Oxford Economic Forecasting (OEF; Oxford, U.K.), which compiles economic forecasts that are used by bodies including the Chemical Industries Association (London). Industry output increased 0.8% last year and growth is expected to accelerate in 2004, OEF says (table). "Output accelerated throughout last year," OEF says. "Sector performance was very diverse with strong growth in paint, basic chemicals, and pharmaceuticals, and significant falls in other sectors."

Chemicals continue to generate a substantial trade surplus for the U.K. economy. The surplus increased from 4.4 billion [pounds sterling] …