U.K. manufacturers' order book balance decreased more than economists expected in August, the latest monthly Industrial Trends Survey by the Confederation of British Industry (CBI) showed Tuesday.
About 15 percent of respondents reported that total order books were above normal in August, while 36 percent said they were below normal. The resulting balance of -21 percent was sharply lower than -6 percent recorded in July, and represented the lowest return since December 2011. Economists were looking for a balance of -10 percent in August.
The balance of export order book came in at -17 percent in August, which was the lowest since January, when the figure was -21 percent.
At the same time, manufacturers' expect their output over the course of the next three months to be flat, following two previous surveys in which they expected output to increase.
"Overall demand for manufactured goods has eased back this month, led by a weakening in the consumer goods sector following a strong July figure," CBI Head of Economic Analysis Anna Leach said.
"The economic environment for UK manufacturers remains challenging, with domestic demand relatively muted and the ongoing Eurozone crisis now seeming to drag on broader global economic momentum."
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