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UK budget deficit widened unexpectedly, but factory orders rise – business live UK budget deficit widened unexpectedly, but factory orders rise – as it happened
(35 minutes later)
Markets have shrugged off a host of uncertainties - the political outlook for Germany, the budget in the UK, the latest Brexit developments, US tax reforms - to end the day in positive territory.
The mood was helped by positive US earnings and housing data, which pushed Wall Street to new highs. The final scores showed:
The FTSE 100 finished up 21.88 points or 0.3% at 7411.34
Germany’s Dax rose 0.83% to 13,167.54
France’s Cac closed 0.48% higher at 5366.15
Italy’s FTSE MIB climbed 0.62% to 22,326.44
But Spain’s Ibex bucked the trend, down 0.32% at 9993.4
In Greece, the Athens market added 1.61% to 721.67
On Wall Street, the Dow Jones Industrial Average is currently up 175 points or 0.74%.
On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow.
US markets are hitting new highs, helped by positive earnings reports and better than expected housing figures. Joshua Mahony, market analyst at IG, said:US markets are hitting new highs, helped by positive earnings reports and better than expected housing figures. Joshua Mahony, market analyst at IG, said:
Global stocks are on the rise today, with US indices proving the big outperformer on the day amid further improvements to the corporate earnings picture. With gold and the yen rising in the afternoon, there is an interesting risk-off shift coming in play despite the record highs being set across US indices.Global stocks are on the rise today, with US indices proving the big outperformer on the day amid further improvements to the corporate earnings picture. With gold and the yen rising in the afternoon, there is an interesting risk-off shift coming in play despite the record highs being set across US indices.
This afternoon saw the US economic picture improve once more, with existing home sales beating market expectations in October. The 2% rise in US existing home sales comes as the US gets back on its feet in the wake of Hurricanes Harvey and Irma. US markets have been punching higher in early trade, as they continue to benefit from an earnings season that appears to be the gift that keeps on giving, as home-improvement firm Lowe’s seeing a 6.5% year-on-year jump in sales in the wake of recent hurricane destruction.This afternoon saw the US economic picture improve once more, with existing home sales beating market expectations in October. The 2% rise in US existing home sales comes as the US gets back on its feet in the wake of Hurricanes Harvey and Irma. US markets have been punching higher in early trade, as they continue to benefit from an earnings season that appears to be the gift that keeps on giving, as home-improvement firm Lowe’s seeing a 6.5% year-on-year jump in sales in the wake of recent hurricane destruction.
As for the UK, he said:As for the UK, he said:
The recent lack of direction in sterling has been a reflection of the largely sideways trade for the FTSE. However, with a growing feeling that the Tory Brexiteers are increasingly open to improving the divorce settlement offer, the likeliness of a December trade talk kick-off seems to be rising. With the UK budget due out tomorrow, the focus on the UK is likely to remain in place, with a heavily housing based speech from Phillip Hammond expected.The recent lack of direction in sterling has been a reflection of the largely sideways trade for the FTSE. However, with a growing feeling that the Tory Brexiteers are increasingly open to improving the divorce settlement offer, the likeliness of a December trade talk kick-off seems to be rising. With the UK budget due out tomorrow, the focus on the UK is likely to remain in place, with a heavily housing based speech from Phillip Hammond expected.
Meanwhile some positive developments relating to Greece. Helena Smith writes:Meanwhile some positive developments relating to Greece. Helena Smith writes:
The European Commission has given the Greek government the green light today to distribute €1.4bn worth of social welfare benefits to citiizens worst affected by the gruelling austerity measures Athens has been forced to take in return for bailout assistance. The European Commission has given the Greek government the green light today to distribute €1.4bn worth of social welfare benefits to citizens worst affected by the gruelling austerity measures Athens has been forced to take in return for bailout assistance.
Addressing the European parliament’s economic and monetary affairs committee, European Commission vice president Valdis Dombrovskis said as Greece had overperformed fiscally, achieving a primary surplus of 1.75 %, its leftist-led government could honour its pledge to hand out a “social dividend” to those hardest hit by the country’s long economic crisis.Addressing the European parliament’s economic and monetary affairs committee, European Commission vice president Valdis Dombrovskis said as Greece had overperformed fiscally, achieving a primary surplus of 1.75 %, its leftist-led government could honour its pledge to hand out a “social dividend” to those hardest hit by the country’s long economic crisis.
The endorsement by Dombrovskis, a one time harsh critic of Greece’s inability to meet fiscal targets, is a 180 degree volte face from the reaction prime minister Alexis Tsipras received when he announced pre-Christmas ‘gift’ handouts last December.The endorsement by Dombrovskis, a one time harsh critic of Greece’s inability to meet fiscal targets, is a 180 degree volte face from the reaction prime minister Alexis Tsipras received when he announced pre-Christmas ‘gift’ handouts last December.
In a televised address that took many by surprise last week, Tsipras said the government had decided to more than double the amount it would distribute in the form of a one-off “social dividend” this year. Among those entitled to the handout include low-income pensioners and unemployed. In a televised address that took many by surprise last week, Tsipras said the government had decided to more than double the amount it would distribute in the form of a one-off “social dividend” this year. Among those entitled to the handout are low-income pensioners and unemployed.
With auditors representing international creditors poised to return to Athens, Dombrovskis sounded an upbeat note adding : “The economy is rebounding.” It was more than feasible, he said, to conclude an ongoing compliance review - the third since the country received a third bailout from eurozone partners and the IMF - by the end of the year or early 2018.With auditors representing international creditors poised to return to Athens, Dombrovskis sounded an upbeat note adding : “The economy is rebounding.” It was more than feasible, he said, to conclude an ongoing compliance review - the third since the country received a third bailout from eurozone partners and the IMF - by the end of the year or early 2018.
In more optimistic news, the Bank of Greece announced that more than 23.5 million tourists visited Greece between January and September this year - up from 21.4% over the same period last year. Revenues came in at around €13bn - a godsend for Greeks.In more optimistic news, the Bank of Greece announced that more than 23.5 million tourists visited Greece between January and September this year - up from 21.4% over the same period last year. Revenues came in at around €13bn - a godsend for Greeks.
Back with the UK, and here’s our report on Airbus warning MPs about the possible effects of Brexit:Back with the UK, and here’s our report on Airbus warning MPs about the possible effects of Brexit:
Airbus has told MPs that Britain risks losing the “crown jewels” of its aviation industry to China as a result of Brexit, putting up to 7,000 wing-manufacturing jobs in Wales at risk.Airbus has told MPs that Britain risks losing the “crown jewels” of its aviation industry to China as a result of Brexit, putting up to 7,000 wing-manufacturing jobs in Wales at risk.
The head of the company’s UK operations warned the business select committee that the threat of new customs bureaucracy and reduced employee mobility could deter long-term investment and accelerate a shift to Asia.The head of the company’s UK operations warned the business select committee that the threat of new customs bureaucracy and reduced employee mobility could deter long-term investment and accelerate a shift to Asia.
Though there are no current plans to move, Katherine Bennett said, adding that she was “fighting to ensure that wing design – the crown jewels of aerospace – remains in this country”.Though there are no current plans to move, Katherine Bennett said, adding that she was “fighting to ensure that wing design – the crown jewels of aerospace – remains in this country”.
“I need to let you know, committee, that other countries would dearly love to design and build wings,” she told MPs. “Some of them already do; we do build wings in China now, and believe you me they are knocking at the door as a result of the situation we are in in this country.“I need to let you know, committee, that other countries would dearly love to design and build wings,” she told MPs. “Some of them already do; we do build wings in China now, and believe you me they are knocking at the door as a result of the situation we are in in this country.
The full story is here:The full story is here:
And more positive US economic news.And more positive US economic news.
Existing home sales rose by more than expected in October, up 2% to a seasonally adjusted annual rate of 5.48m units, helped by a recovery from the disruption caused by recent hurricanes. September’s figure was revised down from 5.39m to 5.37m. Analysts had been expecting a figure of 5.42 for October.Existing home sales rose by more than expected in October, up 2% to a seasonally adjusted annual rate of 5.48m units, helped by a recovery from the disruption caused by recent hurricanes. September’s figure was revised down from 5.39m to 5.37m. Analysts had been expecting a figure of 5.42 for October.
The National Association of Realtors, which compiles the figures, said supply shortages were pushing prices higher and making it difficult for first time buyers. The association’s chief economist Lawrence Yun said:The National Association of Realtors, which compiles the figures, said supply shortages were pushing prices higher and making it difficult for first time buyers. The association’s chief economist Lawrence Yun said:
Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home.Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home.
While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.
The residual effects on sales from Hurricanes Harvey and Irma are still seen in parts of Texas and Florida. However, sales should completely bounce back to their pre-storm levels by the end of the year, as demand for buying in these areas was very strong before the storms.The residual effects on sales from Hurricanes Harvey and Irma are still seen in parts of Texas and Florida. However, sales should completely bounce back to their pre-storm levels by the end of the year, as demand for buying in these areas was very strong before the storms.
US markets have made a bright start, with technology stocks moving higher and pushing the Nasdaq Composite to new highs.US markets have made a bright start, with technology stocks moving higher and pushing the Nasdaq Composite to new highs.
The Dow Jones Industrial Average is currently up 140 points while the S&P 500 opened 0.33% higher and the Nasdaq up 0.46%. Higher oil prices and some relatively positive reports from retailers Urban Outfitters and Dollar Tree.The Dow Jones Industrial Average is currently up 140 points while the S&P 500 opened 0.33% higher and the Nasdaq up 0.46%. Higher oil prices and some relatively positive reports from retailers Urban Outfitters and Dollar Tree.
But trading volumes were thin ahead of the forthcoming Thanksgiving break.But trading volumes were thin ahead of the forthcoming Thanksgiving break.
Here’s a quick summary of the Bank of England hearing at the Treasury Select Committee, from Oxford Economics:Here’s a quick summary of the Bank of England hearing at the Treasury Select Committee, from Oxford Economics:
Little in at today's UK Treasury Committee hearing to suggest the Bank of England will raise UK int rates again soon. With current high inflation cited as a rationale for the recent hike, a sharp inflation fall in 2018 shd keep rates on hold medium-term: https://t.co/gdsp5z6zi2 pic.twitter.com/MGBHW5h6UrLittle in at today's UK Treasury Committee hearing to suggest the Bank of England will raise UK int rates again soon. With current high inflation cited as a rationale for the recent hike, a sharp inflation fall in 2018 shd keep rates on hold medium-term: https://t.co/gdsp5z6zi2 pic.twitter.com/MGBHW5h6Ur
Over in the US, and another positive pointer for the country’s economy.Over in the US, and another positive pointer for the country’s economy.
The Chicago Fed National Activity index - an average of several indicators of economic activity - rose from 0.36 in September to 0.65 in October, better than the 0.2 figure expected by analysts. The September number was also revised upwards from the initial reading of 0.17.The Chicago Fed National Activity index - an average of several indicators of economic activity - rose from 0.36 in September to 0.65 in October, better than the 0.2 figure expected by analysts. The September number was also revised upwards from the initial reading of 0.17.
Chicago Fed "Index Points to a Pickup in Economic Growth in October" https://t.co/BVUUSCFigz pic.twitter.com/JRQBeeuhCsChicago Fed "Index Points to a Pickup in Economic Growth in October" https://t.co/BVUUSCFigz pic.twitter.com/JRQBeeuhCs
Markets seem unshaken by the various disappointments around. Connor Campbell, financial analyst at Spreadex, said:Markets seem unshaken by the various disappointments around. Connor Campbell, financial analyst at Spreadex, said:
Despite the unresolved political situation in Germany, a brewing Tory backlash over the Cabinet’s movement on the EU divorce bill, and an unexpected widening of the deficit ahead of tomorrow’s Autumn Budget, things were pretty damn quiet this Tuesday.Despite the unresolved political situation in Germany, a brewing Tory backlash over the Cabinet’s movement on the EU divorce bill, and an unexpected widening of the deficit ahead of tomorrow’s Autumn Budget, things were pretty damn quiet this Tuesday.
Investors seemed wary of getting too involved with the forex markets. The pound is flat against the dollar and up 0.1% against the euro, while the euro itself effectively unchanged against the greenback, sporadically dipping 0.1%.Investors seemed wary of getting too involved with the forex markets. The pound is flat against the dollar and up 0.1% against the euro, while the euro itself effectively unchanged against the greenback, sporadically dipping 0.1%.
This forex flatness has allowed the European indices room to breathe. The DAX is up half a percent, ignoring the issues with the German government (or lack thereof) to hit a fresh 8 day high; the CAC, meanwhile, has risen 0.4%, with the IBEX also climbing 0.2%. Somewhat predictably the FTSE couldn’t muster the same level of energy as its peers, struggling to break 7400 with a meagre 0.1% rise.This forex flatness has allowed the European indices room to breathe. The DAX is up half a percent, ignoring the issues with the German government (or lack thereof) to hit a fresh 8 day high; the CAC, meanwhile, has risen 0.4%, with the IBEX also climbing 0.2%. Somewhat predictably the FTSE couldn’t muster the same level of energy as its peers, struggling to break 7400 with a meagre 0.1% rise.
Looking to the afternoon and the Dow Jones seems set to claw back more of its recent losses, with a 0.2% increase leaving it 20 points away from 23500. There’s not much worthwhile data to contend with – the existing home sales are expected to rise from 5.39 million to 5.42 million – meaning the focus will likely remain on any pre-Thanksgiving movement in the Republicans’ tax plans.Looking to the afternoon and the Dow Jones seems set to claw back more of its recent losses, with a 0.2% increase leaving it 20 points away from 23500. There’s not much worthwhile data to contend with – the existing home sales are expected to rise from 5.39 million to 5.42 million – meaning the focus will likely remain on any pre-Thanksgiving movement in the Republicans’ tax plans.
Here’s our story on the UK budget deficit:Here’s our story on the UK budget deficit:
Britain’s deficit unexpectedly widened in October, handing Philip Hammond disappointing news on the eve of the budget.Britain’s deficit unexpectedly widened in October, handing Philip Hammond disappointing news on the eve of the budget.
Public sector net borrowing last month, excluding the nationalised banks, grew by £500m to £8bn compared with October a year ago, according to the Office for National Statistics (ONS).Public sector net borrowing last month, excluding the nationalised banks, grew by £500m to £8bn compared with October a year ago, according to the Office for National Statistics (ONS).
City economists expected the deficit, which is the gap between government spending and tax receipts, to improve by £500m to stand at £7bn.City economists expected the deficit, which is the gap between government spending and tax receipts, to improve by £500m to stand at £7bn.
The figures are likely to frustrate the chancellor as he puts the final touches to his budget speech – due to be delivered at about 12.30pm on Wednesday – as they point to a weaker picture than thought for the public finances.The figures are likely to frustrate the chancellor as he puts the final touches to his budget speech – due to be delivered at about 12.30pm on Wednesday – as they point to a weaker picture than thought for the public finances.
Hammond is coming under increasing pressure, including from senior Conservative figures, to increase spending amid widespread dissatisfaction with austerity.Hammond is coming under increasing pressure, including from senior Conservative figures, to increase spending amid widespread dissatisfaction with austerity.
The full report is here:The full report is here:
Time for a quick recap:Time for a quick recap:
Budget Eve has got off to a bad start for Philip Hammond, with new figures showing that Britain’s deficit rose last month. The UK borrowed £8bn in October, up from £7.5bn a year ago and almost a billion pounds more than the City expected.Budget Eve has got off to a bad start for Philip Hammond, with new figures showing that Britain’s deficit rose last month. The UK borrowed £8bn in October, up from £7.5bn a year ago and almost a billion pounds more than the City expected.
The higher borrowing was triggered by a rise in the cost of repaying the UK’s existing debts; the rise in inflation has pushed up the yield on index-linked government bonds.The higher borrowing was triggered by a rise in the cost of repaying the UK’s existing debts; the rise in inflation has pushed up the yield on index-linked government bonds.
City experts say the figures highlights the dilemma facing Hammond. Tomorrow’s budget may show a rise in borrowing in future years, due to weak productivity.City experts say the figures highlights the dilemma facing Hammond. Tomorrow’s budget may show a rise in borrowing in future years, due to weak productivity.
However, borrowing this financial year is still down almost 10%, rather better than forecast in March.However, borrowing this financial year is still down almost 10%, rather better than forecast in March.
Paul Johnson, head of the Institute for Fiscal Studies, reckons the bad news will come in the budget forecasts:Paul Johnson, head of the Institute for Fiscal Studies, reckons the bad news will come in the budget forecasts:
Today's borrowing numbers are not bad news (as some are suggesting). Borrowing this year still on course to come in well below March forecasts. We can expect the bad news tomorrow in reduced productivity and growth forecasts hitting public finances in longer term.Today's borrowing numbers are not bad news (as some are suggesting). Borrowing this year still on course to come in well below March forecasts. We can expect the bad news tomorrow in reduced productivity and growth forecasts hitting public finances in longer term.
We’ve also seen that the weaker pound is helping British factories. New orders have accelerated at the fastest rate since 1988, with manufacturers seeing a rise in exports.We’ve also seen that the weaker pound is helping British factories. New orders have accelerated at the fastest rate since 1988, with manufacturers seeing a rise in exports.
Anna Leach, CBI Head of Economic Intelligence, said:Anna Leach, CBI Head of Economic Intelligence, said:
“UK manufacturers are once more performing strongly as global growth and the lower level of sterling continue to support demand. Output growth has picked up again, and export order books match the highest in more than 20 years.“UK manufacturers are once more performing strongly as global growth and the lower level of sterling continue to support demand. Output growth has picked up again, and export order books match the highest in more than 20 years.
“Nonetheless, uncertainty continues to hold back investment and cost pressures remain strong. Manufacturers will be hoping the Budget brings some relief from the business rates burden in particular.”“Nonetheless, uncertainty continues to hold back investment and cost pressures remain strong. Manufacturers will be hoping the Budget brings some relief from the business rates burden in particular.”
Airbus, the aeroplane manufacturer, has warned that Brexit could force its wing design business overseas. Other countries are ‘knocking on the door’, its UK boss says.Airbus, the aeroplane manufacturer, has warned that Brexit could force its wing design business overseas. Other countries are ‘knocking on the door’, its UK boss says.
The news that Britain’s deficit rose to £8bn last month has disappointed some City traders.The news that Britain’s deficit rose to £8bn last month has disappointed some City traders.
Carlo Alberto De Casa, chief analyst at ActivTrades, says the chancellor would have hoped for a drop in borrowing (as economists had indeed expected).Carlo Alberto De Casa, chief analyst at ActivTrades, says the chancellor would have hoped for a drop in borrowing (as economists had indeed expected).
This isn’t the news Hammond will have been hoping for the day before the budget, as the deficit has increased to £8.0bn from £7.5bn a year earlier.This isn’t the news Hammond will have been hoping for the day before the budget, as the deficit has increased to £8.0bn from £7.5bn a year earlier.
Despite rises in income and VAT receipts and expectations the deficit would narrow closer to £7.bn, inflation and the effect it has had on debt costs has caused the deficit to widen and suggests Carney was right to start focusing on keeping inflation under control with his historical interest rate rise.Despite rises in income and VAT receipts and expectations the deficit would narrow closer to £7.bn, inflation and the effect it has had on debt costs has caused the deficit to widen and suggests Carney was right to start focusing on keeping inflation under control with his historical interest rate rise.
William Anderson Jones, head of UK corporate dealing at RationalFX, says sterling hasn’t been hit, though:William Anderson Jones, head of UK corporate dealing at RationalFX, says sterling hasn’t been hit, though:
Higher borrowing costs due to inflation drove the deficit up, although the effect on the pound has been limited.Higher borrowing costs due to inflation drove the deficit up, although the effect on the pound has been limited.
The deficit figures come as analysts await Chancellor Phillip Hammond’s budget tomorrow. Today’s data highlights the challenge Hammond faces, as many analysts expect a call for more spending as the UK’s economic growth weakens. Investors will be watching the pound closely to see how it reacts tomorrow to the budget.”The deficit figures come as analysts await Chancellor Phillip Hammond’s budget tomorrow. Today’s data highlights the challenge Hammond faces, as many analysts expect a call for more spending as the UK’s economic growth weakens. Investors will be watching the pound closely to see how it reacts tomorrow to the budget.”
John Hawksworth, PwC chief economist, says Hammond will be pleased that borrowing has dropped during this financial year. But....John Hawksworth, PwC chief economist, says Hammond will be pleased that borrowing has dropped during this financial year. But....
The more critical issue for the Budget is how public borrowing will evolve in future years. Lower than expected productivity growth is likely to weigh more heavily in the OBR’s new forecasts tomorrow than the borrowing undershoot this year.The more critical issue for the Budget is how public borrowing will evolve in future years. Lower than expected productivity growth is likely to weigh more heavily in the OBR’s new forecasts tomorrow than the borrowing undershoot this year.
“We do expect the Chancellor to retain a reasonable amount of headroom in meeting his medium-term fiscal target, but he is likely to want to retain most of this as a contingency to deal with any future adverse Brexit-related shocks. While we do expect some giveaways in the Budget on housing, health and some areas of public sector pay, we also expect these to be largely offset by clawbacks in other tax and spending areas.”“We do expect the Chancellor to retain a reasonable amount of headroom in meeting his medium-term fiscal target, but he is likely to want to retain most of this as a contingency to deal with any future adverse Brexit-related shocks. While we do expect some giveaways in the Budget on housing, health and some areas of public sector pay, we also expect these to be largely offset by clawbacks in other tax and spending areas.”
Fiona Cincotta, senior market analyst at City Index, agrees that the next few years will be tough.Fiona Cincotta, senior market analyst at City Index, agrees that the next few years will be tough.
Hammond is still on target to beat a target of £58.3 billion for the 2017/18 financial year. Not bad considering the circumstances.Hammond is still on target to beat a target of £58.3 billion for the 2017/18 financial year. Not bad considering the circumstances.
This means that this year Hammond actually still has some room for manoeuvre, however looking ahead to the coming years, his challenge looks set to intensify. The ONS is expected to forecast lower levels of growth for the UK in the coming years. For the Chancellor, this means lower tax receipts and therefore less money coming in.This means that this year Hammond actually still has some room for manoeuvre, however looking ahead to the coming years, his challenge looks set to intensify. The ONS is expected to forecast lower levels of growth for the UK in the coming years. For the Chancellor, this means lower tax receipts and therefore less money coming in.
Matt Whittaker of the Resolution Foundation also reckons the chancellor’s headroom is shrinking...Matt Whittaker of the Resolution Foundation also reckons the chancellor’s headroom is shrinking...
That good news is likely to provide some offset to tomorrow's productivity downgrade. But the Chancellor's headroom is still likely to shrinkhttps://t.co/Kxw4j14JpB pic.twitter.com/KMmpo1myHAThat good news is likely to provide some offset to tomorrow's productivity downgrade. But the Chancellor's headroom is still likely to shrinkhttps://t.co/Kxw4j14JpB pic.twitter.com/KMmpo1myHA
Over at parliament, the head of Airbus UK has warned MPs that other countries are keen to lure some of its British manufacturing business.Over at parliament, the head of Airbus UK has warned MPs that other countries are keen to lure some of its British manufacturing business.
Katherine Bennett told the Business, energy and industrial strategy committee that Airbus’s wing design business - its “crown jewels” – has won covetous looks from overseas.Katherine Bennett told the Business, energy and industrial strategy committee that Airbus’s wing design business - its “crown jewels” – has won covetous looks from overseas.
She also warned that Airbus staff who are EU citizens are very concerned about the future, and whether they’ll be able to work in the UK after Brexit.She also warned that Airbus staff who are EU citizens are very concerned about the future, and whether they’ll be able to work in the UK after Brexit.
Airbus employs some 6,000 people at its North Wales plant at Broughton, Flintshire.Airbus employs some 6,000 people at its North Wales plant at Broughton, Flintshire.
Airbus UK Vice President warns that wing designer are "crown jewels" of the industry. Currently theirs are designed and made in UK but other countries are "knocking on the door" as result of #BrexitAirbus UK Vice President warns that wing designer are "crown jewels" of the industry. Currently theirs are designed and made in UK but other countries are "knocking on the door" as result of #Brexit
Airbus UK boss Katherine Bennett: "Other countries would dearly love to build wings and believe you me they're knocking at the door as a result of the situation we're in".Airbus UK boss Katherine Bennett: "Other countries would dearly love to build wings and believe you me they're knocking at the door as a result of the situation we're in".
Guardian Business has launched a daily email.Guardian Business has launched a daily email.
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Despite the recent surge in orders, UK factory bosses expect growth to slow over the next quarter.Despite the recent surge in orders, UK factory bosses expect growth to slow over the next quarter.
A failure to invest in new equipment may be to blame.....A failure to invest in new equipment may be to blame.....
Manufacturers expect growth in output to slow—despite surging orders—according to the CBI. This signals that capacity constraints are biting, because manufacturers have lacked the confidence to invest due to Brexit risk. pic.twitter.com/3xtj5eyQZRManufacturers expect growth in output to slow—despite surging orders—according to the CBI. This signals that capacity constraints are biting, because manufacturers have lacked the confidence to invest due to Brexit risk. pic.twitter.com/3xtj5eyQZR
Newsflash: UK factories have just reported the biggest jump in new orders since 1988, as the weak pound boosts exports.Newsflash: UK factories have just reported the biggest jump in new orders since 1988, as the weak pound boosts exports.
That’s according to the CBI’s monthly survey of British manufacturing. It found that output rose in the last quarter, with more orders coming in from abroad.That’s according to the CBI’s monthly survey of British manufacturing. It found that output rose in the last quarter, with more orders coming in from abroad.
Some 28% of manufacturers reported total order books to be above normal, and 11% said they were below normal. That gave a net balance of +17% -- the highest figure since August 1988.Some 28% of manufacturers reported total order books to be above normal, and 11% said they were below normal. That gave a net balance of +17% -- the highest figure since August 1988.
UK CBI Nov trends total orders 17 vs 3 expected https://t.co/OzAMoOAHus pic.twitter.com/AifJ99fTg3UK CBI Nov trends total orders 17 vs 3 expected https://t.co/OzAMoOAHus pic.twitter.com/AifJ99fTg3
The CBI says that orders for food & drink and chemicals rose particularly sharply.The CBI says that orders for food & drink and chemicals rose particularly sharply.
Export order books strengthened “notably” for chemicals, electronics and transport goods.Export order books strengthened “notably” for chemicals, electronics and transport goods.
Both total and export order books improved over the last three months, with total orders now among the strongest since August 1988. #CBI_ITS https://t.co/1k4iI8q8tN pic.twitter.com/P8FlF2cJRSBoth total and export order books improved over the last three months, with total orders now among the strongest since August 1988. #CBI_ITS https://t.co/1k4iI8q8tN pic.twitter.com/P8FlF2cJRS
Here’s John McDonnell MP, Labour’s Shadow Chancellor, on today’s public finances:Here’s John McDonnell MP, Labour’s Shadow Chancellor, on today’s public finances:
“These figures are a reminder of the continued failure of both Philip Hammond and Theresa May over these past seven years. The deficit has still not been eliminated as they promised it would be by 2015, and the national debt continues to grow. The rise in the Government’s deficit over October shows once again that seven years of Tory spending cuts have caused pain and misery for millions with little to show for it.“These figures are a reminder of the continued failure of both Philip Hammond and Theresa May over these past seven years. The deficit has still not been eliminated as they promised it would be by 2015, and the national debt continues to grow. The rise in the Government’s deficit over October shows once again that seven years of Tory spending cuts have caused pain and misery for millions with little to show for it.
“It further highlights why it is so vital that we see a change of course in the Budget tomorrow, halting the growing emergency in our public services and ending their failed austerity policies.“It further highlights why it is so vital that we see a change of course in the Budget tomorrow, halting the growing emergency in our public services and ending their failed austerity policies.
“The next Labour government will set out a serious plan for the public finances with strategic investment underpinned by our Fiscal Credibility Rule, to help build a high-wage, high-skill economy for the many not the few.”“The next Labour government will set out a serious plan for the public finances with strategic investment underpinned by our Fiscal Credibility Rule, to help build a high-wage, high-skill economy for the many not the few.”