–UK CBI: Monthly trends: Oct total orders -23% vs -8% Sep
–UK CBI: Oct quarterly business optimism -12% vs -6% Jul
–UK CBI: Ind. trends: Oct export orders -22% vs -10% Sep
LONDON (MNI) – UK manufacturing saw a sharp fall in output and
optimism at the start of the fourth quarter, according to the CBI’s
monthly and quarterly surveys.
Headline monthly orders balance plunged along with the quarterly
manufacturers’ optimism balances. The CBI attributed the downturn in
part to concerns over the darkening of the economic and political
outlook overseas.
The CBI’s October monthly total orders balance dropped in October
to -23 from -8 in September, well below analysts’ median forecast for a
-7 outturn.
The October export orders balance plunged to -22 from -10 in
September, while the quarterly export optimism balance dived to -19 from
-3.
Overall business optimism in the quarterly survey showed a smaller
fall, dropping to -12 from -6 in July.
The CBI survey provides the first take on manufacturing activity in
Q4.
The most recent official data showed the manufacturing sector
contracting during Q3, with output down 0.7% in the three months through
August on the previous three months and down 1.2% on a year ago.
The headline September CIPS PMI reading fell to 48.4 from 49.6 in
August, taking it further below the 50 breakeven level.
Anna Leach, CBI head of economic analysis, said “Domestic and
overseas demand have both slipped unexpectedly this quarter while output
growth has tailed-off.”
“Sentiment regarding business conditions has also fallen back,
particularly for exports. UK companies are increasingly concerned by
political and economic conditions abroad, whether it is ongoing weakness
and uncertainty in the Eurozone or the approaching fiscal cliff in the
US.”
-London Bureau; Tel: +442078627491; email: drobinson@marketnews.com
wwilkes@marketnews.com
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