UK Manufacturing Rises in January

New orders at Britain’s factories grew at the strongest rate in almost three years in the three months to January as economic uncertainty faded.

A total of 34% of manufacturers reported an increase in new orders over the period, while 21% reported a fall according to the CBI’s latest industrial trends survey. The subsequent balance of +13% was the highest since April 2011.

The picture was less positive for the month of January alone however, with the new orders balance falling unexpectedly to -2% from +12% in December. There was an even sharper drop in export orders, with a balance of -16% reporting a fall.

Howard Archer, chief UK economist at IHS Global Insight, said: “Overall, the CBI survey points to the manufacturing sector being pretty well placed and upbeat at the start of 2014. However, the dip in orders in January is a reminder that the manufacturing sector is not guaranteed a strong 2014.”

Output increased at a faster pace in the three months to January, with a balance of +18% reporting an increase compared with +8% in the three months to October.


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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