| Actual | Previous | |
|---|---|---|
| Orders Balance | -27% | -35% |
Highlights
The UK's CBI industrial trends orders for October showed slight improvements, with a reading of -27, up from -35 in September. While still negative, indicating expectations for lower order volumes, this marks a gradual recovery from the 10-month low in September.
This trend suggests that manufacturers still foresee challenges ahead, but the pace of decline in orders has slowed. The CBI's survey, which includes insights from 322 UK manufacturers, highlights ongoing caution in the sector, with businesses likely responding to subdued demand and broader economic uncertainties. Despite this, the reading could lend some short-term support to the British pound, as it signals a more optimistic outlook compared to previous forecasts.
However, the negative level still indicates that manufacturers expect further contraction in order volumes, underscoring the broader struggles of the UK's manufacturing sector. This gradual recovery may be linked to hopes of stabilizing business conditions, but overall, the sector remains vulnerable to both domestic and global economic pressures. In any event, the CBI update leaves the UK RPI at minus 20 and the RPI-P at 2, indicating underperformance for the RPI and performance within consensus on the RPI-P.
This trend suggests that manufacturers still foresee challenges ahead, but the pace of decline in orders has slowed. The CBI's survey, which includes insights from 322 UK manufacturers, highlights ongoing caution in the sector, with businesses likely responding to subdued demand and broader economic uncertainties. Despite this, the reading could lend some short-term support to the British pound, as it signals a more optimistic outlook compared to previous forecasts.
However, the negative level still indicates that manufacturers expect further contraction in order volumes, underscoring the broader struggles of the UK's manufacturing sector. This gradual recovery may be linked to hopes of stabilizing business conditions, but overall, the sector remains vulnerable to both domestic and global economic pressures. In any event, the CBI update leaves the UK RPI at minus 20 and the RPI-P at 2, indicating underperformance for the RPI and performance within consensus on the RPI-P.
Definition
The Confederation of British Industry (CBI) produces a monthly survey (and a more detailed quarterly report) analysing the performance of UK manufacturing industry. This is the UK's longest running qualitative business tendency survey. Questions relate to domestic and export orders, stocks, price and output expectations with the main market focus being the domestic orders balance. The survey is seen as a loose leading indicator of the official industrial production data.
Description
Started in 1958, this is the UK's longest-running private sector qualitative business tendency survey. The survey is used by policy makers along with those in the business community, academics and top analysts in financial markets. One of its key strengths is that it is released within ten days and prior to official statistics and includes data not covered by official sources. It is never revised. The data are also used by the European Commission's harmonized business survey of EU countries.
Frequency
Monthly and quarterly
Frequency
Monthly and quarterly
