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- UK manufacturers’ order book balance improves slightly, but remains poor
UK manufacturers’ order book balance improves slightly, but remains poor
The latest
survey by the Confederation of British Industry (CBI) revealed on Monday the UK
manufacturers' order books improved slightly in May but remained poor by
historical standards.
According to
the report, the CBI's monthly factory order book balance increased to -58 in
May from -62 in the previous month. However, the reading remained well below a long-run
average of -14. Export order books dropped to their lowest on record since
April 1977 (to -79 from -55 in April).
The CBI also
reported that output in the quarter to June fell at the fastest rate on record since
July 1975 (to -57 from -54 in May), but is expected to decline at a slower pace
in the next three months (-30). Meanwhile, average selling prices for the next
three months are expected to fall at a slower pace (to -10 from -20 in May).
Anna Leach, CBI
Deputy Chief Economist, noted: “The UK manufacturing sector remained in a deep
downturn in June due to the ongoing COVID-19 crisis. Output volumes declined at
a new record pace and export order books fell to an all-time low, reflecting
the significant fall in demand in the UK and abroad. Firms are again hoping
that this will ease somewhat in the next three months.”
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