CBI Total Orders Improved Markedly in Dec

CBI INDUSTRY TRENDS: DEC TOTAL ORDER -25% V -40% NOV
DEC INDUSTRY OUTPUT NEXT 3M: -6%; PREV(NOV): -10%
DEC INDUSTRY OUTPUT PAST 3M: -6%; PREV(NOV): -6%
DEC AVG PRICES NEXT 3 MONTHS: 0%; PREV(NOV): -8%

UK total manufacturing order books improved markedly in Dec, rising to a ten-month high of -25 and coming in stronger than markets expected (median -38). However, orders remain weak by historical standards. Export order ticked up as well to -44 but remained well below their long-term average. Output volumes declined at the same pace in Dec as in Nov and firms expect the pace of decline to remain unchanged in the next three months. Dec's decrease was driven by falls in output of the motor vehicles and transport equipment sub-sector. Manufacturers noted that output levels were 15% below "normal" in Dec, signalling an improvement from Nov's 17%. Firms continue to anticipate subdued price pressures in the next three months with the indicator at 0.