UK Factory Order Books Recover to Pre Crisis Levels

Order books for UK factories are at their highest level since the onset of the financial crisis six years ago, the CBI said.

Underlining the recent upward trend in manufacturing, the monthly snapshot of business conditions showed demand improving both at home and abroad.

Almost a third of firms (28%) questioned in the employers’ organisation’s industrial trends survey said order books were above normal for the time of year while 19% said they were below normal. The gap of +9 percentage points was the widest since August 2007, the month global financial markets were shaken by the US sub-prime mortgage crisis.

Export order books were at their strongest for two-and-a-half years, and firms stepped up production and reduced their stocks to meet the increase in demand.

In the three months to September, 39% of manufacturers said they had boosted output against 21% who said they had cut back. The gap of +18 points was the highest since August 2011 and exceeded expectations.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza