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UK manufacturers expect output to rise in the first quarter of 2024 and selling price expectations hit the weakest in two years in December, data from the Confederation of British Industry showed on Tuesday.
Output volumes were unchanged in the three months to December, which was up from -17 percent in the three months to November, the latest Industrial Trends Survey revealed.
The new order balance improved to -23 percent in December from -35 percent in the preceding period. At the same time, the export order books balance posted -23 percent, up from -31 percent a month ago.
Expectations for average selling price inflation were little changed in December. The corresponding index came in at +7 percent versus +11 percent in three months to November. Selling price expectations were the joint weakest since February 2021 along with the October 2023 reading.
"UK manufacturers appear to have ended the year on a stable footing with December's results only the second set this year to not show falling activity," Anna Leach, CBI Deputy Chief Economist, said.
Leach said the UK manufacturing environment is likely to remain challenging, with global growth set to remain weak in the year ahead.
"High interest rates will continue to weigh on household spending, while adding to business costs", said Leach. "And sticky domestic inflation and strong wage growth suggest cuts to UK interest rates are still some way off."
