UK Factory Orders Contract as War Risks Energy Costs
UK factory orders contracted again in March while price pressures eased. Manufacturers now face fresh risks to energy costs from the Middle East conflict.
Manufacturing activity in the United Kingdom remained in a state of contraction this month, as industrial orders stayed weak and geopolitical tensions introduced new economic risks. According to the latest monthly survey from the Confederation of British Industry (CBI), factory order books showed minimal improvement, although some inflationary pressures have subsided for the time being. The CBI reported that its monthly order book balance reached -27 in March, a slight shift from the -28 recorded in February. Despite this stability, the index remains significantly lower than the long-term historical average of -14. Manufacturers expressed a more positive outlook regarding future production, with output expectations for the coming three months rising to -3 from a previous reading of -12.
