UK Manufacturers Expect Orders To Fall Further: CBI

(RTTNews) - UK manufacturers reported a sharp fall in new orders in the three months to October period and expect another decline in the coming three months, survey data from the Confederation of British Industry showed Thursday. The total order book balance fell to -20 percent in the three months to October from -17 percent in the three months to July, the Industrial Trends Survey revealed.

Both domestic orders and export orders showed a balance of -26 percent, hitting the lowest since July 2020.

Manufacturers expect total new orders to decrease again in the three months to January, as the balance reached -23 percent.

Further, output volumes declined in the quarter to October, with the index falling to -16 percent. Firms expect volumes to drop again in the three months to January. The share of firms that cited orders or sales as a factor likely to limit output in the next three months, increased notably in the three months to October.

Manufacturers plan to reduce their investment intentions and there was an increase in firms reporting uncertainty about demand as the major constraint on investment.

Average costs increased in the quarter to October at an elevated pace. The corresponding balance fell to +52 percent from +63 percent in July. Costs growth is expected to remain elevated in the quarter to January.

Average domestic prices increased albeit at a slower pace relative to July as the balance slid to +12 percent from +33 percent in July. Both domestic and export prices were anticipated to rise in the next three months.