LONDON (Reuters] – The Confederation of British Industry reported Thursday that the growth in British industrial orders slowed in October. It was at its weakest level in six years, against a backdrop of high raw materials prices, and widespread labour shortages.

CBI’s monthly manufacturer’s order book balance declined to +9 from +22 in September. This is its lowest point since April, and far below the forecasted +18 by Reuters economists.

CBI quarterly survey data indicated that October’s domestic prices rose at the fastest rate since April 1980. Meanwhile, raw materials stocks were at their lowest level ever.

This survey’s measure of the expected unit cost – which includes wage bills – rose to its highest level since April 1977.

Anna Leach, CBI deputy chief economic economist said that manufacturers are still facing serious supply problems due to rising material prices and labour shortages.

From +27 in July to +2 October, optimism regarding the business outlook fell to +2 and was at its lowest point since January. That’s when Britain entered into a COVID-19 lockdown.

Short-term output growth expectations remained positive, however, October’s month balance of +33 was the highest monthly balance since July. This is well above series’ long-term mean of +8. The quarter’s output was reported to have been above the average.