UK manufacturing orders hold steady in December - CBI

UK manufacturing orders held steady in December, according to the latest figures from the Confederation of British Industry.

The CBI's order balance was unchanged from November at +17, beating expectations for a drop to +15 and joint highest with last month and August 1988.

The balance of export orders weakened a little to +16 from +20, while the balance of output expectations was steady at +13. Volume of output in the last three months rose to +30 from +28.

Anna Leach, CBI head of economic intelligence, said: "As we head towards the end of 2017, UK manufacturers’ total order books remain at a near 30 high, with export order books remaining at their strongest since the mid-1990s.

“While the lower level of sterling continues to support exporters, cost pressures remain intense. Businesses will expect to see the Government’s Industrial Strategy make rapid progress next year to support manufacturing and the wider economy in every corner of the UK.”

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The recent progress in Brexit talks might give manufacturers confidence to undertake investment projects that they have delayed over the last 18 months. But investment won’t boost capacity quickly enough to make a swift difference. The risk, then, is that the UK economy fails to capitalise fully on the recovery in global trade and remains the G7’s laggard next year."