LONDON, April 25 (Reuters) - British factory orders and
output contracted as stocks of finished goods piled higher,
according to a survey on Tuesday that underlined the recent weak
performance of the manufacturing sector but also pointed to
easing inflation pressures ahead.
The Confederation of British Industry's (CBI) monthly gauge
of industrial orders held at -20 in April, unchanged from
March's reading that had marked a more than two-year low.
The survey's measure of stocks of finished goods rose to
+19, the highest reading since August 2020, pointing to weak
output in the months ahead.
On the plus side for the Bank of Engbland as it ponders how
much further to raise interest rates to curb the jump in
inflation, cost pressures receded further.
"Growth in average costs per unit of output and growth in
average domestic prices have now slowed for four successive
quarters. Manufacturers expect growth in costs and domestic
prices to ease further in the quarter to July," the CBI said.
Official data show manufacturing output has been largely
flat since mid-2022, along with the broader economy, with
construction the sole bright spot.
The CBI's quarterly measure of manufacturing business
sentiment rose to -2 from -5. While still in negative territory,
it marked the highest reading since October 2021.
(Reporting by Andy Bruce
Editing by William Schomberg)
Messaging: @brucereuters))
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