UK Factory Orders Lowest Since 2020

The Confederation of British Industry's monthly net balance of new orders decreased to -40 in December 2024, the lowest since November 2020, compared to -19 in November and forecasts of -22.

The reading showed that total order books were reported as below “normal” and deteriorated markedly.

Export order books were also below “normal” (-37 vs -27) and stocks of finished goods were reported as more than “adequate” (20 vs 21).

"“Manufacturers are facing a perfect storm of weakening external demand on the one hand, amid political instability in some key European markets and uncertainty over US trade policy.

And on the other hand, domestic business confidence has collapsed in the wake of the Budget, which has increased costs and led to widespread reports of project cancellations and falling orders.

Manufacturers are heading into 2025 with no expectation of any near-term improvement", Ben Jones, CBI Lead Economist, said.