UK factory orders stabilise, cost risks seen from war, CBI say

LONDON, March 20 (Reuters) - British factory ​orders contracted ⁠again this month and ​price pressures have eased for now pending clarity on the ​duration ‌of the war in the Middle East, according to ⁠a Confederation of British Industry ⁠survey published on Friday.

The ​CBI's monthly order book balance stood at -27 in March, little changed from -28 in February. The index level ​remains well ‌below its long-run average of -14.

The survey's measure of expectations for output in the next three months improved to -3 from -12.

The survey's gauge of expected ​prices eased to +12 from +26 in February and +29 in January ‌which was its highest reading since February 2023 when Britain was suffering ‌from an energy price shock caused by Russia's invasion of Ukraine.

Cameron Martin, CBI senior economist, said conditions remained ​challenging for manufacturers and the orders pipeline was weak by ‌historical standards.

"The conflict in the Middle East is pushing up energy costs and risks further disrupting supply ⁠chains, ⁠adding to the cost pressures already facing ‌manufacturers," Martin said.

The survey of 279 manufacturers was conducted ​between February 25 ​and March 13, covering the ‌period since the start of the U.S.-Israeli war on Iran which began on February 28. (Writing by William Schomberg, editing by Andy Bruce)