UK factory orders fell far less than expected in November as foreign demand for British goods rose at its sharpest pace in more than 11 years, a survey showed today.
The Confederation of British Industry said its monthly manufacturing order books balance recovered to -6 in November, against analysts' forecasts for a reading of -15. Last month, the balance came in at -20 as it deteriorated at the sharpest rate since the start of the year.
"This month has left many businesses pleasantly surprised," said Ian McCafferty, chief economic adviser at the CBI. "Overseas demand for British made goods has bounced back, and total order books have returned to the levels of the summer."
Short sterling interest-rate futures dipped further into the red after the stronger-than-expected reading, and policymakers may be alarmed that price pressures continue to pick up in the manufacturing sector.
The domestic price expectations balance jumped to +19 from +12 last month, the highest reading since January 2005.
Elsewhere, the export orders balance rose to +3 from -11, the highest reading since August 1995, and the stocks of finished goods balance fell to +2 from +20, its lowest level since 1988.
However, manufacturers' output expectations dipped to +5 from +9 in the previous month.