LONDON, Dec 11: British factory orders fell sharply in December as export orders shrank at their fastest pace in more than five years, a survey showed on Thursday.

The Confederation of British Industry’s monthly Industrial Trends survey showed the factory orders balance improved slightly to -35 in December from -38 in November, but that remains indicative of a strong decline in manufacturing.

The balance measuring companies’ expectations for output over the coming months held at a 28-year low of -42.

The survey showed that despite a sharp fall in the pound this year, demand for British goods abroad has not picked up.

The export orders balance dropped to -33 from -31 -- the lowest since October 2003.

“It is worrying that, despite the 20 per cent depreciation in sterling over the past year, export orders remain so weak,” said Ian McCafferty, CBI chief economic adviser.

“Our export competitiveness is increasing but many of our key export markets are contracting rapidly.”

The survey was conducted between Nov 18 and Dec 3.—Reuters