British Manufacturing Orders Decline Sharply, Reaching Lowest Level Since 2020
Overview of Recent Trends in British Manufacturing
June 23 (Reuters) - British manufacturing orders deteriorated this month at the fastest rate since September 2020 during the COVID-19 pandemic, according to a survey on Tuesday that showed little immediate relief from the easing of tensions in the Middle East.
CBI Survey Results and Key Indicators
The Confederation of British Industry's (CBI) monthly order books balance fell to -45 in June from -41 in May, its lowest ebb since the COVID-19 pandemic.
Expected Output and Future Outlook
It gauge of expected output for the next three months fell to its lowest since December 2024.
Comparison with S&P Global Survey
The CBI's survey contrasted with figures published earlier on Friday by S&P Global, which showed manufacturing orders rising and the much larger services sector falling deeper into contraction this month.
Expert Commentary and Market Implications
Challenges Facing Manufacturers
"Manufacturers are facing an increasingly difficult trading environment, with order books now at their weakest since 2020 and output continuing to fall," said Cameron Martin, CBI senior economist.
Price Pressures and Supply Chain Issues
Like the S&P Global survey, the CBI reported an easing of price pressures from manufacturers, although they remained elevated.
Impact of Geopolitical Events
Martin said the re-opening of the Strait of Hormuz would help British manufacturers.
"But it will take time for energy prices and supply chains to normalise even under the best of circumstances, while the potential for further instability is clear," Martin added.
Reporting and Editorial Notes
(Reporting by Andy Bruce; editing by Suban Abdulla)
