–UK CBI Monthly Ind. Trends: June Total Orders +1% VS -2% In May
–UK CBI June Output Volume +13% Vs +20% In May
–UK CBI June Average Prices +27% Vs +24% In May
LONDON (MNI) – Manufacturing sector price pressures increased in
June and orders balances came in stronger than expected, according to
the latest Confederation of British Industry report.
Manufacturing orders balance rose to +1 in June from -2 in May.
Analysts’ median forecast was for a -5 outturn.
The average prices balance rose to +27 from May’s +24.
Despite the improvement, order books were still below the March
high of +5 and average prices were also below their April high of +36.
The CBI’s May industrial trends survey showed a sharp improvement
in the order book balance, with the -2% outturn much stronger than
expected and well above the long run average of -18%.
The May CIPS survey, however, found none of the optimism apparent
in the CBI survey, with the manufacturing PMI falling to a 20-month low
at 52.1.
CBI Chief Economic Adviser Ian McCafferty said, “UK manufacturers
currently have healthy order books. Factory output is still set to rise
solidly over the coming quarter but expectations for growth have
moderated compared with recent months”.
The expected volume of output measure fell to +13 from +20 in May.
The survey highlights continuing inflation problems in the UK with
predictions for output price inflation running well above long-run
averages in all parts of industry, the CBI said.
Long run average prices on the CBI survey is +1 compared with the
+27 over a 16-year period.
The survey was conducted between May 26 and June 15.
–London bureau: 44 20 7862 7941; email: ukeditorial@marketnews.com
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