UK industrial orders improve in May - CBI

UK industrial orders improved marginally in May with the order balance down 8%, from a drop of 11% in April and against the market's expectation for a fall of 13%, a Confederation of British Industry (CBI) survey showed today.

Its Industrial Trends Survey found about 15% of businesses reported an increase in export orders, and 29% a decrease, resulting in a balance of -14%.

CBI added output was expected to firm over the next three months, with 32% companies suggesting a rise and 12% expecting a decrease, leaving a balance of 20%.

"Conditions in the manufacturing sector seem to be a little better overall, with improving order books compared with a couple of months ago," said CBI's director of economics, Rain Newton-Smith.

"But domestic and global uncertainty remains high, alongside lacklustre export demand," Newton-Smith said in a statement, adding choppiness in emerging markets, China and India remained significant sources of potential demand.

"An exports commission would enable exporters to better exploit the growth opportunities provided by these and other growth markets," Newton-Smith said.

"Manufacturers need to work in partnership with the Government to embrace long-term opportunities and trends, particularly in digital. A greater focus is also required on developing the right skills in the sector, managing energy costs, and encouraging further R&D investment."