UK DATA: CBI Industrial Trends Survey Adds to Weak Manufacturing Outlooks
May-24 10:07
UK CBI MAY INDUSTRIAL ORDERS -17 (FCST -19); APR -20
UK CBI MAY INDUSTRIAL PRICES NXT 3 MONTHS +21 (= FCST); APR +23
The CBI industrial trends survey flagged a continued decline in manufacturing output and demand, albeit at a softer pace in May.
- Export order books declined markedly, whilst business sentiment deteriorated further implying pessimistic outlooks for the industry for a fifth consecutive month.
- This follows the May UK flash manufacturing PMI weakened to a five-month low in yesterday's release, indicating 10 consecutive months of contractive (sub-50) business activity. Manufacturing orders declined markedly, as firms flagged soft global demand, Brexit headwinds and stronger global competition for fewer orders driving a sharp fall in exports.
- The CBI report and PMI data point towards a Q2 contraction so far, with the CBI survey anticipating further declines in output over the next three months.
- Yet positive developments were evident in inflation expectations. Average price expectations for the coming three months eased to a two-year low. This echoes the April PPI data also published today, which showed PPI eased sharply to the lowest since February 2021.
Source: CBI
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