Advertisement

UK CBI factory outlook weakens despite November bounceback

LONDON (Reuters) - British manufacturers expect their output in the next three months be its weakest in more than a year even after orders picked up in November, an industry survey showed on Thursday.

The total order book balance from the Confederation of British Industry's (CBI) monthly industrial trends survey rose in November to +3 -- a three-month high.

Economists polled by Reuters had expected it to remain unchanged from October's reading of -6, which was the lowest since January 2013.

The CBI's measure for expected output in the next three months fell to +12 -- its lowest level since October 2013 -- from +18 in October.

"Overall manufacturing output remains quite strong, although growth is expected to ease against the backdrop of continuing global risks," said Rain Newton-Smith, the CBI's director for economics.

"Manufacturers are particularly struggling in export markets due to a challenging global economic climate, including sluggish euro zone growth, and also slowing emerging markets, such as China."

Euro zone business growth eased far more than any forecaster expected this month, according to a separate industry survey also released on Thursday.

The latest official data showed British industrial output grew faster than expected in September as a major oil field came back on stream and car production rebounded, a positive end to an otherwise soft third quarter for production.

(Reporting by Andy Bruce and William Schomberg)