October 25, 2006	Wednesday	Shawwal 1, 1427

LONDON, Oct 24: British factory orders crumbled unexpectedly in October as a slowdown in the US economy hit export demand, raising concern the sector's impressive performance for much of this year may have come to an end.

A Confederation of British Industry survey also suggested the recent weakening may be sustained with manufacturers' expectations of future output falling to their lowest since January.

"October's weak CBI Industrial Trends survey brought the recent strong run of UK economic news to an end and suggested that activity eased at the start of the fourth quarter," said Paul Dales, UK economist at Capital Economics.

The CBI's manufacturing order books balance tumbled to -20 in October from a two-year high of -5 in September, surprising economists who had forecast an unchanged reading.

Interest rate futures rose, but only briefly, as the slowdown in activity was offset by evidence of rising price pressures. Indeed, more manufacturers expected to raise their prices this month than last, with the prices component rising to +12 from +8.--Reuters