Release Explanation: The release tries to gauge manager’s expectations from the manufacturing industry by comparing actual sales with sales from last year.
Trade Desk Thoughts: The UK CBI report shows the manufacturing sector remains gloomy about future expectations. The release number came in at -58, the lowest read since 1980.
Asked about their expectations for output volumes over the next three months, 8% of firms said they expected them to rise, while 56% said they would fall. The resulting balance of -48% was slightly worse than last month (-44%) and equaled the survey record low of September 1980 (-48%). This question was introduced into the 51-year old survey in February 1975.
A balance of 58% of respondents said that total order book levels were below normal, similar to February (-56%), and again marking the weakest demand for UK manufactured goods since January 1992 (-60%).
Forex Technical Reaction: The pound was unaffected by the negative news release. Tonight, the pound gained 80 pips, and managed to break above the 50-day simple moving average.