Jan 21 (Reuters) – British industrial orders fell again in January but by the smallest amount since September, while expectations for prices shot to an almost three-year high, the Confederation of British Industry said on Wednesday.
The CBI’s monthly order book balance rose to -30 in January from -32 in December. The index level remains well below its long-run average of -14.
The survey’s gauge of expected prices shot up to +29, the highest reading since February 2023 when Britain was still reeling from an energy price shock sparked by Russia’s invasion of Ukraine.
Ben Jones, senior lead economist at the CBI, said conditions for manufacturers remained “extremely tough”.
“At the same time, cost pressures – from rising wages, high energy prices and taxes – are squeezing margins and weighing on competitiveness, pushing firms to plan price rises even as demand remains subdued,” Jones said.
A quarterly question in the survey showed manufacturers became a little more optimistic in the three months to January, with the business situation gauge rising to its highest since July 2024.
(Reporting by Andy Bruce; editing by Suban Abdulla)
Comments