UK Factory Orders Improve

The Confederation of British Industry's monthly net balance of new orders increased to -19 in November 2024 from -27 in October, better than forecasts of -25.

Total order books were reported as below “normal” but improved relative to last month.

Export order books were also seen as below “normal” but expectations for average selling price inflation rose (11 vs 0) and stocks of finished goods were seen as more than “adequate” (21, the highest since August 2020 vs 17).

“Output has underperformed expectations in recent months, with manufacturers pointing to uncertainty around the UK Budget, the US elections and recent political instability in Europe as among the factors leading customers to pause or cancel orders.

Many firms still need to work through the implications of the Budget for their own plans for pay, hiring and investment, but it’s an encouraging sign that output volumes are expected to return to growth in the quarter ahead", Ben Jones, CBI Lead Economist, said.