UK factory orders at lowest level in two years

British factory order books fell at their sharpest pace in nearly two years in August but companies still expect to raise output in the coming months, an industry survey showed today.

The Confederation of British Industry said its monthly manufacturing order books balance fell to -29 in August, its lowest since October 2003. That compared with a forecast for an improvement to -18. The July reading was -20.

Companies were slightly less optimistic about future output plans, with that balance dropping to +3 in August from +6 in July.

But export order books saw a modest improvement to -17 in August from -18 in July.

The survey was conducted between July 26 and August 17.