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UK factory orders remain in doldrums, cost pressures jump, CBI says

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UK factory orders remain in doldrums, cost pressures jump, CBI says

LONDON, July 23 (Reuters) – British manufacturing orders continued to deteriorate in July at the joint-fastest rate ​since September 2020, during the ‌COVID-19 pandemic, according to a survey on Thursday that also showed cost pressures rose.

The Confederation of British Industry’s monthly ‌order ​books balance held at -45 ⁠in July, its ⁠joint-lowest since the pandemic.

“We’re seeing manufacturers being squeezed from both sides. Costs continue to climb while weak ​demand limits their ability to raise prices – leaving firms to ⁠absorb the pressure through ⁠shrinking margins, weaker investment ​and further cuts to employment,” said Ben ​Jones, CBI lead economist.

“If the new ‌administration is serious about re-industrialising Britain, restoring industrial competitiveness must be one of its first priorities.”

The ⁠CBI’s quarterly data showed a rapid rise in cost pressure for manufacturers in the ⁠three ‌months to July, with unit ⁠costs jumping at the ​fastest ‌pace since the three months ​to October ⁠2022.

The monthly data showed expectations for output in the next three months rose slightly to -30 from -31 in June.

(Reporting by Suban Abdulla, editing by ​Andy Bruce)