CBI factory orders index hits six-month high
Britain’s main factory orders index rebounded in February to its highest level in six months, boosting hopes that the economy is on track for recovery, the CBI’s monthly industrial trends survey showed.
The Confederation of British Industry survey’s total order book balance jumped to -3 from -16 in January, well above economists’ forecasts of a reading of -14 and its highest since August last year.
The export order book balance mirrored the move, increasing to -2 from -26, again the highest since August, while the output expectations index held at a 9-month high of +15.
“Both domestic and overseas demand have strengthened, underpinning solid expectations for output growth, which is encouraging news, given the particularly difficult period for business in the final quarter of 2011,” said CBI chief economic advisor Ian McCafferty.
Recent surveys have suggested the manufacturing sector may have recovered modestly at the start of this year, raising hopes that Britain will avoid falling back into recession.
But official data on Friday is expected to confirm that the economy contracted by 0.2 percent in the last three months of 2011.