July 27, 2023
British manufacturing orders experienced a slowdown in July, showing the weakest rate of decline this year. Expectations for increased selling prices also cooled down. The monthly balance of new orders, according to the Confederation of British Industry (CBI) survey, improved to -9 from -15 in June, the highest reading since December and above its long-run average. The CBI’s output gauge for the past three months turned positive for the first time this year, indicating increased optimism. However, the S&P Global business survey of manufacturers showed a deepening downturn, contrasting with the CBI’s findings.
Despite some optimism among manufacturers this quarter, the overall manufacturing picture remains subdued, as stated by CBI lead economist Ben Jones. Although the monthly gauge of expected output prices eased to its lowest level since February 2021, the CBI still highlighted acute cost pressures. Jones expressed concerns about a squeeze on margins and higher finance costs impacting investment plans.
Furthermore, the quarterly investment intentions for plant and machinery fell to their lowest level since January 2021.
Source: Reuters
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