FXStreet (Mumbai) – Total factory orders picked up pace in August while exports to European and overseas markets continue to struggle on the back of a strong sterling, the Confederation of British Industries (CBI) survey showed on Thursday.
The overall balance of orders within the UK manufacturing sector improved in August to -1%, up from -10% in July, and comfortably above market estimates.
Rain Newton-Smith, CBI Director of Economics noted, “While the rebound in manufacturers’ total order books is encouraging, many firms are still struggling in overseas markets. On the one hand, the strength of Sterling and cheaper energy are reducing factory input costs, but the strong pound is also hitting export prices and margins hard,”
“With only 4% of the UK’s exports going to China, the country’s slowdown is not a direct cause of concern for our manufacturers, but it will make life harder for our firms in exposed sectors like metals and commodities.”
(Market News Provided by FXstreet)