CBI factory orders balance hits six-month low
Factory orders deteriorated more than expected this month, as exports fell, the CBI’s monthly industrial trends survey showed.
The Confederation of British Industry survey’s total order book balance fell to -17 this month from -8 in April, below expectations for a reading of -10, and its lowest reading since December.
The export order book balance also fell to -12 from -10, its lowest since January.
The CBI said domestic demand had also eased, contributing to firms’ more pessimistic outlook for production in the next three months. The outlook expectations balance fell to -3 from + 24 in April.
Domestic demand for manufacturers’ goods has eased this month, leading to an expectation amongst firms that growth in production will slow sharply over the coming quarter,” said
CBI chief economic advisor Ian McCafferty.
If the crisis in the eurozone continues, it is bound to have a dampening effect on sentiment in coming months,” he said.
The latest PMI survey for Britain showed the manufacturing sector barely grew in April as an economic slowdown in the eurozone curbed export demand, raising the chances the Bank of England will vote for another cash boost to prevent a longer recession.
Britain is in its second recession since the financial crisis and while the country’s leaders have made manufacturing a key part of their plan to rebalance the economy, the sector failed to lift the economy out of the doldrums in the first quarter.