- Katja Hall, CBI deputy director general
The UK factory orders rose at the weakest pace in two years in July as a strong Pound has further dimmed the outlook for manufacturing exports. The Confederation of British Industry's industrial order book balance declined to –10 this month, hitting the lowest level since July 2013 and compared with –7 in the prior month. Economists, in contrasts, had expected the reading to improve slightly to –5. Nevertheless, the gauge remained above its long-term average of –15. The CBI's quarterly industrial trends survey suggested a clouded outlook for manufacturers. Expectations for export orders in the next three months plunged to their lowest level since October 2011, as manufacturers are continuing to feel pressure from a strong Pound. Earlier this month, the Sterling reached the highest level in more than seven years on a trade-weighted basis. The British economy remains heavily reliant on consumer spending, the recent reports showed.
Data due later today is expected to show the UK economy rebounded from a surprise slowdown in early 2015 and expanded by a quarterly 0.7% in the April-June period, returning back to the growth rate seen at the end of last year.
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