Stockpiling Effect: British Factory Orders Miss Expectations - Forex News by FX Leaders

Stockpiling Effect: British Factory Orders Miss Expectations

Posted Wednesday, May 22, 2019 by
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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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