Market news
23.08.2021, 10:24

UK manufacturers’ order book balance unexpectedly rises in August

The latest survey by the Confederation of British Industry (CBI) revealed on Monday the UK manufacturers' order books increased slightly in August.

According to the report, the CBI's monthly factory order book balance rose to +18 in August from +17 in the previous month. This was well above its long-run average of -14. Economists had forecast the reading to come in at +16. Meanwhile, export order books (-16 from -7 in July) weakened somewhat from last month but still sit broadly in line with their long-run average (-18).

The CBI also reported that output volumes in the three months to August (+22 from +37 in July) decelerated from last month’s record pace but remained firm by historical standards (long run average of +3). It was also expected that output growth will pick up slightly in the next three months (+26).

In other survey results, stock adequacy (-14 from -11 in July) fell to its weakest on record (since April 1977), marking the third month in a row in which a new record-low outturn has been set. In addition, expectations for output price growth over the next three months remained strong, a position broadly in line with last month’s outturn (+43 from +42 in July, long run average of +3) and close to the near-30 year high seen in June (+46).

“Manufacturing activity remained strong this month, with total order books remaining firm and most sub-sectors reporting rising output. However, early signs from the data suggest that growth in activity may have peaked,” noted Alpesh Paleja, CBI Lead Economist. “It is notable that stock adequacy deteriorated to a new record low for the third consecutive month. Many firms are feeling the pinch from ongoing supply chain disruption, which also partly explains the continued strength in pricing pressures.”

Meanwhile, Tom Crotty, Group Director at INEOS and Chair of the CBI Manufacturing Council, said:While it is great to see manufacturing performing well, there is no getting away from the fact that many firms are facing serious challenges, such as staff shortages, supply disruption, and rising costs. It is important that these issues are addressed quickly.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location