UK factories witnessed orders staying at the highest level in almost three decades. The Confederation of British Industry said its industrial order book balance remained at +17 in December, matching the highest reading since August 1988. The gauge of export orders fell to +16 from +20 in November, marking the highest level since 1995.
Britain’s factories benefited from the rebound in the eurozone and global growth and weaker pound following the Brexit referendum in 2016.
Industrial production accounts for only about 10% of the British economy, but the Bank of England hopes that exports could soften the blow on the overall growth due to lower consumer spending, which has been squeezed by rising inflation.
Despite the recent growth in orders, the CBI's measure of factory output expectations for the next three months remained at +13, the lowest level since October 2016. Meanwhile, manufacturers expected their prices would rise at the fastest pace since June.
