UK factories account strong order progress, record bottle-necks
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An industry poll released on Monday revealed that British manufacturers reported a near-record inflow of new orders this month, but also a deteriorating scarcity of finished goods stocks, which deteriorated at an unprecedented rate for the second month in a row.
The Confederation of British Industry data, collected between November 22 and December 10, show minimal sign of a knock from the Omicron type of coronavirus, which has been a huge blow to face-to-face consumer services industries.
The CBI’s monthly order book balance for manufacturers fell to +24 in December, down from +26 in November, but output growth over the previous three months was the greatest since July.
Growth is likely to drop slightly over the next three months, but it will still be significantly higher than the long-run average. “UK manufacturing demand remains strong, and output accelerated to meet this demand in December.
However, behind the scenes, firms are battling pressures on a number of fronts,” said Anna Leach, the CBI’s deputy chief economist.
The indicator of finished goods stocks fell to a record low of -24 in December, down from a prior low of -16 in December.
Story by : Norvisi Mawunyegah