Investing.com - U.K. industrial order expectations improved less than expected in April, dampening optimism over the country’s economic outlook, industry data showed on Monday.
In a report, the Confederation of British Industry said its index of industrial order expectations increased by 1.0 point to a reading of 1.0 this month from March’s reading of 0.0. Analysts had expected the index to rise by 4.0 point to 4.0 in April.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
The survey of 468 firms reported an easing of growth in total new orders, but this still remained well above average. Domestic orders rose modestly, whilst exports growth remained unexpectedly sluggish.
Commenting on the report, Katja Hall, CBI Deputy Director-General, said, "Exports keep dragging at the heels of growth: firms are finding the recent rise in the pound against the euro challenging, making them less competitive in Europe, while the unravelling situation in Greece is creating uncertainty."
Firms have stronger expectations for the three months ahead, with output and orders growth anticipated to firm up and predictions for exports growth at their strongest since July 2014.
GBP/USD was trading at 1.5134 from around 1.5137 ahead of the announcement, while EUR/GBP was at 0.7160 from 0.7158 earlier.
Meanwhile, European stock markets were lower. London’s FTSE 100 dipped 0.3%, the EURO STOXX 50 slumped 0.5%, France’s CAC 40 dropped 0.85%, while Germany's DAX declined 0.1%.