Updated April 24th, 2024 at 16:30 IST

UK industrial orders fall despite greater optimism: CBI

April's CBI industrial orders fell to -23 from -18 in March, missing economists' expected improvement to -16 and well below the long-term average of -13.

Reported by: Business Desk
Representative | Image:Shutterstock

UK industrial decline: UK industrial orders have declined this month, despite a surge in confidence amongst manufacturers reaching its peak since July 2021, according to the latest findings from the Confederation of British Industry (CBI).

In April, the CBI's monthly industrial orders balance dropped to -23 from -18 in March, which falls short of economists' expectations. The Reuters poll anticipated a slight improvement to -16, notably lower than the survey's typical -13 average.

However, there's a notable positive shift in the CBI's quarterly business optimism index, reaching its highest level in nearly three years at +9. This marks an improvement from January's -3 and surpasses the usual -7 average.

Deputy Chief Economist at the CBI, Anna Leach, stated that conditions for manufacturers have improved, with sentiment rising and expectations for future output growth reaching their strongest point in six months.

Leach also mentioned that concerns about skill shortages have eased due to a softer labour market, while worries regarding access to materials and components are at their lowest since January 2020.

Despite these improvements, there's a continued increase in price pressures. The monthly survey indicates a rise to +27 in April from +21 in March, marking the highest level since February 2023.

(With Reuters Inputs)

Published April 24th, 2024 at 16:30 IST