Stockpiling Effect: British Factory Orders Miss Expectations
Arslan Butt • 1 min read
According to data released by the Confederation of British Industry (CBI), the monthly order book balance in the UK dropped from -5 to -10 in April 2019, hitting the lowest level since October 2016.
After the stockpiling ahead of Brexit that drove factory orders higher previously, this figure is expected to drag down the manufacturing sector in Q2 2019. There are also expectations that the overall British economy could take a hit in Q2 2019.
The Bank of England had forecast a QoQ growth of 0.2% during this time period, less than half the QoQ growth rate registered in Q1 2019. The OECD, in contrast, remains optimistic and has raised Britain’s growth forecast for 2019 from 0.8% to 1.2% due to the extension of Brexit deadline to October 31.