UK manufacturers’ order book balance worsens slightly in December

The latest survey by the Confederation of British Industry (CBI) showed on Tuesday the UK manufacturers’ order books fell in December, remaining below the long-run average (-13).

According to the report, the CBI's monthly factory order book balance decreased to -28 in December from -26 in the previous month.

Export order book gauge also weakened on the previous month, reaching -35, down from -22 in November, remaining below its long-run average of -17. Meanwhile, stocks of finished goods rose to +24 from +17, exceeding the long-run average of +13%. Expectations for average selling prices for the coming three months picked up somewhat to +6 in December, up from -1 in November.

Tom Crotty, Group Director, INEOS and Chair of the CBI Manufacturing Council, noted: “These disappointing figures are reflective of the widespread weakness in the global manufacturing sector and the impact of continued Brexit uncertainty in the run-up to the General Election. Following the General Election, manufacturers will be eager to see the Prime Minister break the cycle of Brexit uncertainty as a priority. There is also a fresh opportunity for the sector to work with the government to solve long-term challenges such as raising productivity, addressing skills shortages, improving sustainability and tackling climate change.”