A sharp drop in British manufacturing orders eased a bit this month and factories became a little more optimistic about output in the early part of next year, an industry survey showed on Tuesday.

The Confederation of British Industry's monthly order book balance increased to -23 in December from -35 in November, which had been the lowest reading since early 2021.

The balance, which is not adjusted for seasonal variations, has a tendency to rise during the month of December and is still well below its long-run average of -13.

Output in the three months to December was flat, ending a four-month run of decline.

"UK manufacturers appear to have ended the year on a stable footing, with December's results only the second set this year to not show falling activity," CBI Deputy Chief Economist Anna Leach said.

"Selling price expectations are the weakest they have been in two years, reflecting ongoing improvements in supply conditions and soft demand," she added.

The survey's gauge of output expectations for the next three months turned slightly positive in December.

(Reporting by Andy Bruce; editing by David Milliken)