UK Factory Output Expected to Stabilise Despite October Orders Drop, CBI Survey Shows

British manufacturing output is expected to stabilise over the next three months despite a decline in orders in October, according to a Confederation of British Industry survey released Thursday. The CBI's volume of output gauge for the next three months posted a reading of -1, following flat or falling production since mid-2022. The CBI's monthly order books balance fell to -32 in October from -9 in September, while the quarterly gauge of output expectations improved to -1 from -30 in July. The quarterly measure of expected domestic prices rose to +24 from +11. "But with orders still falling and labour shortages picking up, significant challenges remain," said CBI senior economist Cameron Martin, citing stubbornly high costs squeezing profitability and fragile business confidence weighing on investment. Official data has shown solid growth in Britain's manufacturing output this year.