LONDON (Reuters) – British industrial orders dropped this month, despite a rise in optimism among manufacturers to its highest since July 2021, the Confederation of British Industry said on Wednesday.
The CBI’s monthly industrial orders balance fell to -23 in April from -18 in March, below economists’ forecasts in a Reuters poll for a slight improvement to -16 and well beneath the survey’s long-run average of -13.
However, the CBI’s quarterly business optimism gauge rose sharply to its highest in nearly three years at +9, up from -3 in January and well above its long-run average of -7.
“Conditions facing manufacturers have taken a turn for the better, with sentiment improving and expectations for future output growth their strongest in six months,” CBI deputy chief economist Anna Leach said.
A softer labour market had eased concerns about skills shortages while concerns about access to materials and components were the lowest since January 2020, she added.
Price pressures continued to pick up, though, with the monthly survey showing a rise to +27 in April from +21 in March, the highest since February 2023.