European Economy: U.K. Slows From Weak Sterling
U.K. August CBI manufacturing orders index slipped to -13, worse than our survey median estimate for -11 and compared to -8 in July. This pushed the index back to its April level. A breakdown of the survey shows that export orders fell to -9 from -7, while the output expectation index hit a near 7-year low of -13 from -7 in June.
Domestic price expectations abated slightly, to +31 from +34, probably on the back of weaker commodity prices over the past month. Overall, data adds to evidence of a continued slowdown to the sector, where a weaker Sterling has yet to boost exports.