UK factory orders fall at sharpest since 1992-CBI

British factory orders fell more than expected this month and at their sharpest rate since 1992, and firms expect to cut output at the fastest pace in nearly 30 years, a survey showed on Wednesday.

The Confederation of British Industry said its monthly total order book balance fell to -56 in February from -48 in January, a much weaker reading than the -45 predicted by analysts. That was the lowest reading since January 1992.

The output expectations balance slipped to -44 from -43, the the worst reading since September 1980. There was also no sign of the weaker exchange rate helping exporters. The export orders balance slumped to -49 from -39, the lowest since November 2001.

"The weak pound has made UK exports more competitive but this advantage has been outweighed by falling global demand," said John Cridland, CBI deputy director general

Manufacturers expect to cut prices, though, at their sharpest rate in more than 5 years.