Forexpros – U.K. industrial order expectations fell more-than-expected in July, industry data showed on Wednesday.
In a report, the Confederation of British Industry said its index of industrial order expectations declined to minus 10.0 in July, compared to reading of 1.0 in June.
Analysts had expected the index to decline to minus 3.0 in July.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
For the first time in two years, optimism regarding the general business situation fell among U.K. manufacturers, and expectations of slower activity are driving a reappraisal of forward-looking business plans.
Growth in total orders and production eased slightly in the three months to July and manufacturers expect a further deceleration over the next quarter.
Commenting on the report, CBI Chief Economic Advisor Ian McCafferty said, “This slowdown is expected to persist into the third quarter. How far the slowdown will be borne out is yet unclear, but the combination of political and economic uncertainty is sapping confidence.”
Following the release of that data, the pound was slightly higher against the U.S. dollar, with GBP/USD easing up 0.1% to trade at 1.6409.
Meanwhile, European stock markets were broadly lower. The FTSE 100 fell 0.2%, the EURO STOXX 50 dropped 0.85%, France’s CAC 40 shed 0.65%, while Germany’s DAX slumped 0.2%.
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