LONDON - British factory orders grew faster than expected this month as overseas demand picked up, the CBI's industrial trends survey showed on Wednesday.
The Confederation of British Industry survey's total order book balance rose to +11 in August from +2 in July, well above expectations of a reading of +4 and their long-run average of -16.
The export order balance picked up to -3 from -16, again above its average reading of -20.
"The outlook for UK manufacturers remains healthy. Despite a dip in the pace of output growth, companies expect a strong pick-up in the next three months," said CBI deputy director general, Katja Hall
"But with growth flat at best in the euro zone and sterling having risen in recent months, there are still some headwinds to export demand," she added.
Firms' stocks of finished goods also rose to their highest in a year, which the CBI said possibly reflected expectations of higher future demand.
The latest official data showed British industrial and manufacturing output rose 0.3 percent in June, weaker than forecast.
((Reporting by Andy Bruce and David Milliken))