The pound is falling again
15.12.2014
The British pound is weakening again. The currency was not even helped by comments of the Confederation of Industry, CBI, about the preservation of activity in the industrial sector at the same level and the growth of production in the next three months.
According to the calculations by CBI, 16% of all UK industries expect growth in parameters of production in the next quarter. Another 25% of producers said that in December, the total order backlog was above average levels. 19% of respondents noted that the balance on average was at 5% with the forecast from CBI at 3%.
However, attention is drawn to a reduction in export orders - in general outline a fall in demand is not surprising, but for the British industry it is unpleasant. Inflation expectations are growing stronger. According to the analysis from the CBI, expectations for selling prices adjusted for inflation increased to 7%.
There is, however, a moment that still makes this review positive. Domestic demand in the UK remains high, a fact that is able to regulate the situation in the industry and manufacturing.
RoboForex Analytical Department
According to the calculations by CBI, 16% of all UK industries expect growth in parameters of production in the next quarter. Another 25% of producers said that in December, the total order backlog was above average levels. 19% of respondents noted that the balance on average was at 5% with the forecast from CBI at 3%.
However, attention is drawn to a reduction in export orders - in general outline a fall in demand is not surprising, but for the British industry it is unpleasant. Inflation expectations are growing stronger. According to the analysis from the CBI, expectations for selling prices adjusted for inflation increased to 7%.
There is, however, a moment that still makes this review positive. Domestic demand in the UK remains high, a fact that is able to regulate the situation in the industry and manufacturing.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.