UK factory orders show best performance since November 2024, CBI survey shows

LONDON, Aug 20 (Reuters) - A gauge of British factory orders rose this month to reach its highest level since November 2024, adding to wider signs of resilience in the economy despite the ongoing fallout from the Iran war, a survey showed on Thursday.

The Confederation of British Industry's monthly order books balance rose to -25 in August from -45 in July, which had been the joint-lowest reading since the COVID-19 pandemic.

While still signalling a deterioration in order books, the 20-point jump marked the sharpest improvement in more than five years and was one of the biggest since records began in the 1970s.

The survey's gauge of expectations for output in the months ahead also improved and export orders came out of negative territory for the first time since June 2022.

"Stronger global demand is providing some welcome relief for manufacturers, with export order books improving sharply and lifting overall orders," CBI Senior Economist Cameron Martin said.

"However, it is too soon to know whether this marks the beginning of a sustained shift in conditions, particularly given ongoing cost pressures reported by manufacturers, with selling price expectations in our survey picking up again and remaining well above historical norms," he added.

The survey's balance for expected prices rose to +22 in August from +11 in July, likely reflecting a rebound in crude oil prices over the past few weeks.

(Reporting by Andy Bruce; editing by David Milliken)