LONDON (Reuters) - Manufacturers’ orders unexpectedly rose in June while price pressures in the sector held close to multi-year highs, a survey showed on Wednesday.
The Confederation of British Industry’s monthly industrial trends survey showed that the total order books balance was +1 after -10 in May. Analysts had forecast a reading of -12.
The domestic price expectations balance eased slightly to +28 in June from a 13-year high of +30 in May.
Evidence of a resilient manufacturing sector and sustained inflationary pressures is likely to support market expectations that interest rates could rise, although policymakers have been looking for a economic rebalancing in favour of the sector.
“Manufacturing demand is holding up reasonably well,” said Ian McCafferty, CBI chief economic adviser. “Manufacturers, especially those exposed to the global economy, have been less affected by the slowdown in domestic spending than other sectors.”
“At the same time, however, there has been no let up from the impact of higher costs on manufacturers and the CBI’s data shows firms still having to pass them on in higher prices.”
Reporting by Christina Fincher