UK factories see signs of recovery in output, CBI says
7:03 am Thursday, November 21st, 2024
LONDON (Reuters) – British manufacturers expect their output to grow after a recent slump linked to uncertainty about the first budget of the new government, the U.S. elections and other factors, the Confederation of British Industry said on Thursday.
The CBI’s monthly industrial trends survey showed output expectations for the next three months improved to +9 in November from -1 in October, the highest since August.
Output over the last three months slipped to -12 from -6 in the three months to October, although the CBI’s measure of industrial orders improved a bit to -19 from -27.
“Output has underperformed expectations in recent months, with manufacturers pointing to uncertainty around the UK budget, the U.S. elections and recent political instability in Europe as among the factors leading customers to pause or cancel orders,” CBI economist Ben Jones said.
“Many firms still need to work through the implications of the budget for their own plans for pay, hiring and investment, but it’s an encouraging sign that output volumes are expected to return to growth in the quarter ahead,” Jones said.
The CBI’s measure for exports remained weak at -27, unchanged from October.
Its gauge of expectations among firms for the prices they will charge in the next three months rose to +11 from zero, the highest since August but broadly in line with the historical average.
The survey was based on the responses of 317 manufacturers and was conducted between Oct. 25 and Nov. 13.
(Writing by William Schomberg, editing by Andy Bruce)
