UK CBI factory output stabilises in three months to April
LONDON, April 25 (Reuters) - British manufacturing output stabilised in the three months to April after a tough start to the year, according to a survey on Monday that showed producers were more optimistic about the next three months.
The Confederation of British Industry's quarterly gauge of factory output ticked up to +1 from -2 in the three months to January, its best reading July last year.
New orders continued to decline, but at the same pace as in the three months to January.
"Manufacturing has yet to pick-up after a flat start to the year, with falling orders providing little impetus for production," Rain Newton-Smith, director of economics at the CBI, said.
"The falling exchange rate should give some support to manufacturers, and investment intentions are strong. With the expected pick-up in exports, it's likely that firms will be looking to increase capacity."
The CBI's monthly measure of manufacturing orders rose to -11 in April from -14 the previous month, its highest since December and slightly better than the -15 forecast in a Reuters poll of economists.
Official data released earlier this month showed output in Britain's manufacturing sector fell at its fastest pace, in annual terms, since mid-2013.
The Bank of England has said gauges of Britain's economic activity are likely to be tricky to interpret given the uncertainty created by a June 23 referendum on Britain's European Union membership. (Reporting by Andy Bruce)
