British manufacturers this month reported the sharpest contraction in orders since January and expectations for selling prices cooled, the Confederation of British Industry said on Tuesday.
The CBI’s monthly balance for manufacturing new orders fell in June to -33 from -30 in May.
The CBI’s gauge of output for the past three months improved but remained rooted in contraction territory.
“The UK’s manufacturing sector is under significant pressure, contending with high energy costs, rising labour costs, pervasive skills shortages, and a volatile global economic environment,” said Ben Jones, lead economist at the CBI.
The survey’s gauge of export orders rose to its highest level since August last year, meaning the worsening picture for orders overall reflected worsening domestic demand.
Expectations for rising prices among manufacturers fell to their lowest level in net terms since February, the CBI said.
(Reporting by Andy Bruce)
