UK Factory Orders Reach Highest Level Since July 2023, CBI Survey Shows

LONDON: British factory orders improved sharply in September, reaching their strongest level since July 2023, according to the latest survey by the Confederation of British Industry (CBI), providing further signs of resilience in the country’s manufacturing sector.

The CBI’s monthly order books balance rose to -9 in September from -25 in August, marking a 16-point improvement in a single month. The balance has increased by 36 points over the past two months, representing the largest two-month rise since the survey began 49 years ago.

The survey also indicated improved expectations for manufacturing output in the months ahead. The corresponding measure reached its highest level since March, suggesting that manufacturers anticipate further improvement in production conditions.

“There are growing signs that conditions are stabilising for manufacturers,” said Cameron Martin, senior economist at the CBI.

At the same time, manufacturers reported a moderation in expected price pressures. The survey’s expected price balance declined to +12 in September from +22 in August, indicating that expectations for future price increases have eased compared with the previous month.

The latest figures add to recent indications of resilience in the British economy and follow improvements recorded in manufacturing output. However, the negative order-book balance means that manufacturers, on aggregate, still reported weaker-than-normal order volumes despite the significant improvement in September.

The survey provides a timely indication of conditions across Britain’s manufacturing sector as businesses continue to assess demand, production prospects and cost pressures.