UK manufacturing order growth accelerated more than expected in May, the CBI’s monthly industrial trends survey shows.
The CBI survey’s total order book balance rose this month to -2 from -11 in April, above expectations of a reading of -5 and the index’s long-run average of -18, though below the three-year high reached in March.
Output expectations weakened slightly to +20 from +22, and the balance measuring the expected pace of inflation also eased to +24 from +36.
CBI chief economic advisor Ian McCafferty said: “Total and export order books are both well above their long-run averages, and with demand healthy firms are predicting another strong rise in output.”
“Predictions for output price inflation have moderated compared with earlier this year, which is encouraging. However they are still very strong by historical comparison, reflecting high commodity prices and import costs,” he added.