U.K. Factory Orders Rise to Highest Level in Two Years, CBI SaysBy
Weaker pound continues to put upward pressure on costs
Selling-price expectations jump to highest since 2011
Orders at U.K. factories climbed at the fastest pace in two years this month, according to the Confederation of British Industry.
The report from the lobby group also showed that the pound’s 16 percent slide since Britain’s vote to leave the European Union appears to be having a greater impact on inflation than exports. A gauge of foreign orders remained below zero, while companies’ selling-price expectations jumped to the highest since April 2011.
Inflation expectations picked up notably in the food and drink sector, which is particularly vulnerable to foreign-exchange fluctuations and has recently been exacerbated by extreme weather in Spain that’s led to shortages of staples such as lettuce and zucchini in British supermarkets.
The CBI’s measure of manufacturing orders increased for a fourth month to 8, the highest since February 2015, with half of its 18 sub-sectors reporting stronger demand.