The
latest survey by the Confederation of British Industry (CBI) revealed on Monday
the UK manufacturers' order books rose in September, hitting the highest level
on record.
According
to the report, the CBI's monthly factory order book balance increased to +22 in
September from +18 in the previous month. This was the highest reading since April
1977. Economists had forecast the reading to come in at +15. Meanwhile, export order
books (-2 from -16 in August) improved to their highest balance since March
2019 and was well above its long-run average (-18).
The
CBI also reported that output volumes in the three months to September (+16
from +22 in August) decelerated for the second consecutive month but remained
firm by historical standards (long-run average of +3). It
was also expected that output growth would accelerate in the next three months (+25).
In
other survey results, stock adequacy picked up slightly from its record low in
August (-11 from -14) but remained weak overall (long-run average of +12). In
addition, manufacturers’ expectations for output price growth in the next three
months remained strong (+41 from +43 in August, long-run average of +3).
“Today’s
survey highlights how amidst a variety of supply challenges, companies are
beginning to struggle to meet high demand,” noted Anna Leach, CBI Deputy Chief
Economist. “Despite close to half of manufacturers surveyed reporting order
books above normal, output growth has slowed sharply, albeit remaining
relatively robust. As well as skill and labour shortages, sharply increasing
material costs and shortages of key components, producers now face rocketing
energy prices.”
Meanwhile,
Tom Crotty, Group Director at INEOS and Chair of the CBI Manufacturing Council,
said: “It
is reassuring to see order books reaching new highs, but global supply chain
issues and cost pressures are continuing to hold back the sector. It is
important that these issues are addressed as a priority.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.