UK manufacturing orders ease in June

British manufacturing orders saw a contraction in June, but at a reduced pace compared to May, according to a survey by the Confederation of British Industry (CBI).

The CBI’s monthly gauge of new manufacturing orders improved to -18 in June, up from -33 in May, marking a three-month high. This survey reflects responses from 248 manufacturing companies gathered between May 24 and June 13.

Despite this improvement in domestic orders, the outlook for export orders dimmed significantly. The CBI’s export orders indicator fell to its lowest level since February 2021, suggesting a challenging month for exporters.

Ben Jones, CBI’s lead economist, highlighted that manufacturers are generally optimistic about the economic trajectory, with output expectations rising to their highest level since October.

However, he cautioned that overall order books remain weak, with the marked decline in export orders being a significant concern for the future.

This survey signals a cautious recovery in the UK manufacturing sector, with potential risks ahead due to weakening export demand.

Attribution: Reuters.