The latest survey by the Confederation of British Industry (CBI) revealed on Wednesday the UK manufacturers' order books improved in January.

According to the report, the CBI's monthly factory order book balance decreased to -22 in January from -28 in the previous month. Economists had forecast the reading to come in at -23.

The CBI also said that in the quarter to January, total new orders declined at the fastest pace (-21) since the financial crisis, reflecting drops in both domestic (-21, also the quickest decrease since the financial crisis) and export orders (-10). However, manufacturers expect total new orders to increase next quarter (+9), with domestic orders broadly flat (-2) and export orders growing slightly (+5).

Business optimism in the manufacturing improved significantly in the quarter to January, to +23 from -44 in October, which is the strongest it's been since April 2014. This also marked the largest change in sentiment (67 points) in a single quarter on record (since 1958). Export sentiment and investment intentions also improved over the quarter.

Meanwhile, output volumes in the three months to January (-15) dropped at a similarly quick pace to last month, largely reflecting a sharp fall in the production of motor vehicles. However, the output is expected to stabilize next quarter (+4, the strongest expectations in 7 months).