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CBI factory orders growth hits four-month high, outlook brighter

Published 15/12/2014, 12:09
© Reuters. An employee at Harris Tweed Hebrides works in the factory on the Isle of Lewis in the Outer Hebrides

LONDON (Reuters) - British manufacturing orders grew at the fastest pace in four months in December, according to an industry survey that pointed to a brighter outlook for the coming months.

The total order book balance from the Confederation of British Industry's (CBI) monthly industrial trends survey rose in December to +5, its highest level since August and well above the survey average of -16.

Economists polled by Reuters had expected it to remain unchanged from November's reading of +3.

The CBI's measure for expected output in the next three months rose to +16 -- a three-month high -- from +12 in November.

"Export orders have improved, and output is expected to continue growing as we head into the New Year. However, the otherwise solid outlook for UK manufacturers is tempered by a challenging global backdrop," said Rain Newton-Smith, the CBI's director for economics.

"With euro zone growth disappointing and some emerging markets facing a tough time, firms need to look harder for opportunities to ramp up exports to high-growth sectors across the globe."

© Reuters. An employee at Harris Tweed Hebrides works in the factory on the Isle of Lewis in the Outer Hebrides

The latest official data showed British manufacturing slumped unexpectedly in October after a strong September, but economists said the country's economic recovery still looked set to slow only slightly at the end of 2014.

(Reporting by Andy Bruce, editing by David Milliken)

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