UK Industrial Orders Remain Weak but Improve in December

Orders in the United Kingdom (UK) log a -23 reading in December, a weak reading that has a 29th percentile standing on data back to 1991. However, it's a significant improvement from November's reading at -35. It also represents a small improvement from October's reading of -26 for total orders. Still, compared to the 12-month average orders are weaker in December than what they averaged over the last 12-months.

Export orders sketch a similar pattern as they rose to a - 23 reading in December from -31 in November and stand at the same level as in October. December export orders are just a tick weaker than what they have averaged over the past 12-months. Export orders register a 39-percentile standing in their historic queue of data.

Finished stocks in the UK rose but continue to signal modest overall readings. The December reading of +11 has a 43 percentile standing; it's up from a reading of +3 in November and +4 in October. Inventory-building is only slightly faster than its 12-month average pace.

The outlook for output volume in the next three months improved to +5 in December from -7 in November but that's still weaker than the +15 value from October. Historically the standing is weak, residing in the 36th percentile of its historic queue of data. However there is no new weakness signaled here; at + 5 the month’s reading is at the same level as its12-month average.

Average prices in the next three months log a + 7 reading, weaker than November's +11 and identical with the October’s value of +7. The reading is lower than the 12-month average of 20, reflecting that inflation ran higher earlier in the year and it has been coming down. Inflation still has an elevated reading above its historic median; its queue percentile standing on data from 1991 is at a 56.9 percentile, leaving it at a small margin above its historic median on this timeline.

Summing up The UK industrial report suggests expansion continues. Output volume is looked at as continuing to expand in the future and price pressures are expected to be less than what they've been - inflation will linger. Stocks are being built modestly. Total orders and export orders continue to sag, residing in the lower one-third of their historic range of values. The UK economy is still plodding along, however, it's still growing, and the industrial sector is expected to continue to grow.