LONDON, July 23 (Reuters) – British manufacturing orders continued to deteriorate in July at the joint-fastest rate since September 2020, during the COVID-19 pandemic, according to a survey on Thursday that also showed cost pressures rose.
The Confederation of British Industry’s monthly order books balance held at -45 in July, its joint-lowest since the pandemic.
“We’re seeing manufacturers being squeezed from both sides. Costs continue to climb while weak demand limits their ability to raise prices – leaving firms to absorb the pressure through shrinking margins, weaker investment and further cuts to employment,” said Ben Jones, CBI lead economist.
“If the new administration is serious about re-industrialising Britain, restoring industrial competitiveness must be one of its first priorities.”
The CBI’s quarterly data showed a rapid rise in cost pressure for manufacturers in the three months to July, with unit costs jumping at the fastest pace since the three months to October 2022.
The monthly data showed expectations for output in the next three months rose slightly to -30 from -31 in June.
(Reporting by Suban Abdulla, editing by Andy Bruce)