–Adds Detail To Version Transmitted At 1101 GMT
London, MNI – UK industrial orders picked up sharply in February,
rising to their highest level since August last year and far surpassing
analysts’ expectations, the CBI said today.
The February total orders balance came in at -3, up from -16 in
January. Analysts’ median forecast was that total orders would rise to
-14 from January’s -16.
The CBI said orders were now back at “normal levels,” which they
put at a -3 to 3 range, for the first time since last August. The -3
outturn is well above the series long-run average of -18.
The CBI survey showed export orders also improving markedly. The
export balance rose to -2 from -26 in January, again the highest level
since August and well above the long-run average of -21.
Output expectations remained firm in February, with the 15 balance
for those expecting output to rise over the next three months unchanged
from January.
Ian McCafferty, CBI chief economic adviser, said “The improvement
in manufacturing conditions seen in January has been sustained this
month. Both domestic and overseas demand have strengthened,
underpinning solid expectations for output growth, which is encouraging
news.”
The CBI’s January survey had shown some improvement for the sector.
The January total orders balance improved to -16 from -23 in December,
while the output volume balance rose to 15 from -8. The expected prices
balance rose to 13 from 7.
The headline Markit/Chartered Institute of Purchasing and Supply
manufacturing also showed the sector expanding in January, coming in at
52.1.
The evidence is mounting that the industrial sector should make a
positive contribution to Q1 GDP growth, having contracted in Q4. There
was a sharp fall in industrial production of 1.2% on the quarter in Q4,
with manufacturing down 0.9% on the quarter.
The CBI numbers show net percentage balances.
— London newsroom: 207 862 7491; e-mail: drobinson@marketnews.com
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