- Rain Newton-Smith, CBI Director of Economics
The British manufacturing sector is ending 2014 on a more positive note, after having lost some steam earlier in the year. UK manufacturing orders rose at the fastest pace in four months in December, according to the Confederation of British Industry's survey results, which also showed a brighter outlook for the near term. The total order book balance from the CBI monthly industrial trends survey picked up to 5 compared with 3 a month earlier. Over the three months through December, orders balance advanced to 13, above historical standards of 2. With export orders improving, output is forecasted to continue growing in the coming months. Markit's recent two PMI surveys indicate that, although sliding from the historical highs seen at the beginning of this year, business activity in British factories had increased to a three-month high before hitting the peak in four months in November. Stronger domestic demand was offset by sluggish exports.
Separately, Britain's house prices saw the biggest monthly drop in December, while the outlook for the next year still remains upbeat, given the lack of supply as well as low interest rate environment. The average asking property price in the UK plummeted by a record 3.3% between November and December. This lowered the annual price growth to a rise of 7%, down from 8.5% in the previous month, according to the latest data from Rightmove.
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