The Confederation of British Industry, in its latest survey noted an improvement in factory orders, increasing -8, a much better figure in comparison to August’s dismal -21. The CBI however cautioned that manufacturers continue to face challenging economic environment in the months ahead.
The data came out better than expected, with the general consensus at -15, considering August’s poor performance.
CBI’s export order book balanced increase to -10 from previous -17 in August.
The boost in manufacturing is seen as increased demand following August declines and provided a better growth expectations output.
From its survey, the CBI reported that Uk manufacturers expect to see a modest increase in output during the coming months, with sectors such as chemicals, foods and drinks sector leading the way.
On a broader note, there is a continued uncertainty that could well build through early winter. Key decisions in the Eurozone and the US fiscal cliff fast approaching could make things difficult for UK manufacturers.
Earlier in the day, the ONS released data for the retail sales which saw a sluggish growth of 2.7% in August for the year. The UK’s economy has been resilient and latest data points towards recovery albeit very slow and sluggish. With the Bank of England keeping its options open to further easing, which if happens could be in November 2012 could well pave the way to give the UK’s economic recovery a much needed boost.
About Confederation of British Industry
The CBI has offices across the world besides the UK and is considered to be the country’s premier lobbying group for policy makers, giving voice to many UK businesses. To learn more about CBI, click here
To read the original press release from CBI, click here