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- UK manufacturers’ order book balance unexpectedly declines in April
UK manufacturers’ order book balance unexpectedly declines in April
The
latest survey by the Confederation of British Industry (CBI) revealed on Thursday
the UK manufacturers' order books fell in April.
According
to the report, the CBI's monthly factory order book balance decreased to -8 in April
from -5 in the previous month but remained above its long-run average of -14. Economists
had forecast the reading to come in at 2.
The
CBI also reported that output volumes in the three months to April were broadly
flat (+3 from +3 in March), while total new orders grew at their quickest pace
since April 2019 (+5 from -12 in January). It was also expected that both
output (+36) and orders (+20) growth would pick up rapidly in the next quarter.
In
other survey results, manufacturing optimism in the three months to April (+38)
improved at its quickest pace since April 1973, while investment intentions for
the next year saw a strong, broad-based improvement, with firms expecting to
spend more on buildings, plant and machinery, product and process innovation,
and training and retraining compared to last year. Numbers employed in the
three months to April (+10) grew at their quickest pace since July 2018, and
are seen to accelerate their growth further next quarter (+19) with
expectations at their strongest since April 1974.
Cost
pressures continue to temper the outlook for the manufacturing sector, however.
Average costs growth in the quarter to April (+48 from +34) accelerated at its
quickest pace since April 2011 and costs are forecast to grow at a similarly
rapid rate next quarter.
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