UK manufacturing sector eases in September - CBI
Factory orders in the UK grew at their weakest rate since April in September, according to the latest survey from the Confederation of British Industry.
The CBI's factory order book balance fell to +7 from +13 in August, missing expectations for an unchanged reading, largely due to the food and drink sector.
Meanwhile, the export order book balance came in at +10 in September from +11 the month before and the output balance for the last three months fell to +17 from +30.
Still, the CBI pointed out that all three balances remained above the long-run averages.
Anna Leach, CBI head of economic intelligence, said: "Manufacturers continue to report solid growth in output, while total order books and export order books are holding firm.
"Expectations for selling prices were largely in-line with the previous month, but price pressures do appear to have moderated somewhat since earlier in the year."
Howard Archer, chief economic advisor at the EY Item Club, said the outlook for manufacturers appears somewhat mixed, with a promising export environment countered by challenging-looking domestic conditions.
"On the export side, a very competitive pound and healthy global demand should buoy UK manufacturers competing in foreign markets. The weakened pound could also encourage some companies to switch to domestic sources for supplies, which would help manufacturers of intermediate products.
"On the domestic front, increased prices for capital goods and big-ticket consumer durable goods, weakened consumer purchasing power, and economic and political uncertainty threaten to hamper manufacturers. Businesses’ willingness to invest and buy capital goods is being tested by economic, political and Brexit uncertainties.”