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London, MNI – The UK industrial sector saw total and export orders
fall in December to their lowest levels since last year, as the euro
area crisis bit.
December industry total orders fell to -23 from -19 in November,
hitting their lowest level since October 2010 while export orders
dropped to -32 from -31, hitting their lowest level since January last
year. The data show the industrial sector, which outperformed services
when the UK recovery started, has slipped back into contractionary
territory.
Industrial total and export order book balances have been negative
since September, according to the CBI series.
The CBI said investment goods firms reported the most marked
decline in order books – suggesting the downturn could hit capacity
ahead.
Ian McCafferty, chief economic adviser for the CBI, said “The
weaker export performance no doubt reflects ongoing instability in the
euro area, our biggest export market, and its knock-on impact on
prospects for the real economy.”
Output volumes remained in the red, with the balance -8, unchanged
from November. This was the third consecutive monthly negative outturn
for output.
Despite the fall in orders average prices picked up, with the price
balance rising to 7 from 2 in November, hitting its highest level since
August. The CBI said consumer goods firms drove the rise in the prices
balance.
Stocks adequacy balances were unchanged in December at 16.
The survey was conducted between Nov 24 and Dec 7.
Analysts took a gloomy view of the data, noting it suggested
manufacturing looks set to make a negative contribution to fourth
quarter growth.
— London newsroom: 207 862 4791; e-mail:
ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MABDS$]]
