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- UK manufacturers’ order book balance improves less than forecast in July
UK manufacturers’ order book balance improves less than forecast in July
The latest
survey by the Confederation of British Industry (CBI) revealed on Thursday the
UK manufacturers' order books improved slightly in July.
According to the report, the CBI's monthly factory order book balance increased to -46 in July from -58 in the previous month. This pointed to the smallest decline in factory orders since March. Economists had forecast the reading to come in at -38.
The CBI also
reported that output in the quarter to June fell at the steepest rate since 1975
(to -59 from -57 in June), but is expected to begin to recover in the next
three months (+15). Meanwhile, average domestic prices in the quarter to July
(-24) dropped at their fastest pace since January 2002, while average export
prices (-28) declined at their quickest since July 2000. However, firms expect
domestic prices to pick up slightly (+4) next quarter, while export prices are
anticipated to decrease at a slower pace (-10).
“Manufacturers
continue to face extreme hardship due to the COVID-19 crisis. Output volumes
continued to decline at a record pace, while total orders have fallen at their fastest
rate since October 1980”, noted Rain Newton-Smith, CBI Chief Economist. “There
are tentative signs of gradual recovery on the horizon, with firms expecting
output and orders to begin to pick up in the next three months. But demand
still remains deeply depressed.”
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