BLBG: U.K. Factory Orders Rise to Highest Level in Two Years, CBI Says
Orders at U.K. factories climbed at the fastest pace in two years this month, according to the Confederation of British Industry.
The report from the lobby group also showed that the poundâ€™s 16 percent slide since Britainâ€™s vote to leave the European Union appears to be having a greater impact on inflation than exports. A gauge of foreign orders remained below zero, while companiesâ€™ selling-price expectations jumped to the highest since April 2011.
Inflation expectations picked up notably in the food and drink sector, which is particularly vulnerable to foreign-exchange fluctuations and has recently been exacerbated by extreme weather in Spain thatâ€™s led to shortages of staples such as lettuce and zucchini in British supermarkets.
The CBIâ€™s measure of manufacturing orders increased for a fourth month to 8, the highest since February 2015, with half of its 18 sub-sectors reporting stronger demand.