Investing.com - U.K. industrial order expectations deteriorated more-than-expected in May, adding to concerns over the health of the U.K.’s economy, industry data showed on Wednesday.
In a report, the Confederation of British Industry said its index of industrial order expectations declined by 9.0 points to a reading of minus 17.0 in May from April’s reading of minus 8.0.
Analysts had expected the index to decline by 2.0 points to minus 10.0 in May.
The index hit a six-month high of minus 3.0 in February, but has been on a downtrend ever since.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
Commenting on the report, CBI Chief Economic Advisor Ian McCafferty said, “Domestic demand for manufacturers’ goods has eased this month, leading to an expectation among firms that growth in production will slow sharply over the coming quarter.”
“Export order books, however, are holding up, as UK exporters start to make inroads into high-growth markets. Nevertheless, if the crisis in the euro zone continues, it is bound to have a dampening effect on sentiment in coming months,” he added.
Following the release of that data, the pound held on losses against the U.S. dollar, with GBP/USD shedding 0.23% to trade at 1.5724.
Meanwhile, European stock markets remained sharply lower. London’s FTSE 100 sank 1.95%, the EURO STOXX 50 tumbled 2.3%, France’s CAC 40 plunged 2.1%, while Germany's DAX dropped 1.85%.
In a report, the Confederation of British Industry said its index of industrial order expectations declined by 9.0 points to a reading of minus 17.0 in May from April’s reading of minus 8.0.
Analysts had expected the index to decline by 2.0 points to minus 10.0 in May.
The index hit a six-month high of minus 3.0 in February, but has been on a downtrend ever since.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
Commenting on the report, CBI Chief Economic Advisor Ian McCafferty said, “Domestic demand for manufacturers’ goods has eased this month, leading to an expectation among firms that growth in production will slow sharply over the coming quarter.”
“Export order books, however, are holding up, as UK exporters start to make inroads into high-growth markets. Nevertheless, if the crisis in the euro zone continues, it is bound to have a dampening effect on sentiment in coming months,” he added.
Following the release of that data, the pound held on losses against the U.S. dollar, with GBP/USD shedding 0.23% to trade at 1.5724.
Meanwhile, European stock markets remained sharply lower. London’s FTSE 100 sank 1.95%, the EURO STOXX 50 tumbled 2.3%, France’s CAC 40 plunged 2.1%, while Germany's DAX dropped 1.85%.