Investing.com - U.K. industrial order expectations improved less than expected in May, despite growing optimism over the country’s economic outlook, industry data showed on Thursday.
In a report, the Confederation of British Industry said its index of industrial order expectations rose by 1.0 point to a reading of 0.0 this month from April’s reading of -1.0. Analysts had expected the index to improve by 5.0 points to 4.0 in May.
Output volumes continued to grow at the same rate as in the previous two months, and with stronger growth anticipated for the coming quarter.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
Katja Hall, CBI Director-General, said, “Overall, the manufacturing sector continues to perform well. Output growth is on an upward trend, with firms expecting an even stronger rise in the next three months.”
“The recent rise in Sterling, coupled with a tepid recovery in the Eurozone could weigh on export demand. As the UK’s economic recovery gains a firmer footing, we need to ramp up manufacturing exports to high-growth markets, driving job creation here in the UK,” she added.
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.14% to trade at 1.6878.
Meanwhile, European stock markets were mixed. London’s FTSE 100 rose 0.1%, the Euro Stoxx 50 fell 0.2%, France’s CAC 40 declined 0.25%, while Germany's DAX tacked on 0.1%.