Uk Manufacturers See Orders Decline
UK factory orders fell in October, a survey from the Confederation of British Industry (CBI) suggests. However, the broader picture is that orders grew strongly over the last three months. The CBI said there was little evidence that weakness in financial markets was having an effect on manufacturers. The report said that orders from overseas were down in October with "exporters feeling the impact of the weaker dollar". Manufacturers were more pessimistic about the business environment "in the wake of the credit crunch". The data will fuel arguments about whether or not the Bank of England should cut interest rates. Analysts are predicting that the government is likely to leave interest rates on hold at 5.75% for the time being. "There are some tentative signs that the pace of demand and output growth will edge lower in coming months" said Ian McCafferty, the head economist at the CBI. He said that rapid inflation - seen across a variety of items notably food and oil - is putting pressure on profit margins. While the CBI's industrial trends survey suggested a slowdown, other recent data has indicated that the UK economy is in good shape. The Office for National Statistics said the UK economy grew at its fastest rate for two years in the third quarter of this year.