May 21 (Reuters) - British manufacturing orders contracted this month at the fastest rate since November and expectations for future price hikes abated, a survey showed on Tuesday.
The Confederation of British Industry's monthly gauge of industrial orders sank to -33 from -23 in April, despite the biggest rise in output since November 2022. A Reuters poll had pointed to a reading of -20.
The survey's reading of future selling price expectations fell in May to +15 from +27, its lowest since January - something that Bank of England officials are likely to view as good news while they weigh interest rate cuts in the coming months.
"Manufacturers expect to increase output through the summer months, but any recovery looks set to be fairly gradual, with order books soft and inventory levels relatively high," CBI deputy chief economist Anna Leach said.
Reporting by Andy Bruce; editing by Sarah Young
