The survey by
the Confederation of British Industry (CBI) revealed on Thursday that the UK
manufacturers' order books improved in November relative to October.
According to
the report, the CBI's monthly factory order book balance jumped to -19 this
month from -27 in the previous month. The November
figure was the highest in five months but remained below both “normal” and its long-run average (-13).
Economists had expected the reading
to increase to -25.
The survey also
showed that the manufacturing output volumes declined in the three months to
November at a faster pace than in the quarter to October (-12, compared to -6 in
the three months to October), but were expected to rise in the three months to
February (+9).
In other survey
results, expectations for average selling price inflation heightened in
November (+11, compared to 0 in October), slightly exceeding the long-run
average (+7). Stocks of finished goods were considered as more than “adequate”
in November (+21, compared to +17 in October), with the balance being the highest
since August 2020.
Commenting on
the results of the latest monthly CBI Industrial Trends, Ben Jones, CBI lead
economist, noted that output had underperformed expectations in recent months,
with manufacturers pointing to uncertainty around the UK budget, the U.S.
elections and recent political instability in Europe as among the factors
leading customers to pause or cancel orders. “Many firms still need to work
through the implications of the Budget for their own plans for pay, hiring and
investment, but it’s an encouraging sign that output volumes are expected to
return to growth in the quarter ahead, with order books also showing some
improvement this month,” he added.