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U.K. CBI industrial order expectations drop unexpectedly in January

Published 01/20/2011, 06:07 AM
GBP/USD
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Investing.com – U.K. industrial order expectations unexpectedly declined in January, industry data showed on Thursday.

In a report, the Confederation of British Industry said its index of industrial order expectations dropped to -16.0 in January, compared to reading of -3.0 in December.

Analysts had expected the index to post a reading of -1.0 in January.

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 Adviser Ian McCafferty said, “Manufacturers have come under intense pressure to pass on rising costs: they have increased prices markedly in this quarter, and expect to raise them at an even faster pace over the next three months. This will drive further inflationary pressure in the wider economy.”

Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.13% to hit 1.5977.

Meanwhile, European stock markets were broadly lower. The FTSE 100 tumbled 1.50%, the EURO STOXX 50 dropped 0.16%, France’s CAC 40 slumped 0.55%, while Germany's DAX was down 0.80%.


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