UK manufacturing orders rose to a post-Brexit high according to figures released yesterday by the Confederation of British Industry. Manufacturing order books improved to the highest level since February, but export order books and output growth slowed. Manufacturers mentioned that although their order books are at promising levels, the depreciation of the Pound has led to many expecting to raise their prices at the sharpest levels since January 2014 in early 2017.
Slovak Prime Minister Robert Fico said recently that Theresa May’s Government do not have a plan for Brexit and encouraged her to provide some ‘clear proposals.’ The Pound dipped in value as a result and this will likely set the tone for the coming months as the UK Government and EU wrangle for the best severance deal.
Eyes will turn to the first Autumn statement under Theresa May’s Government as Philip Hammond takes the stand. Spectators will be looking closely at Hammond’s tone in regards to the economic outlook following Brexit and how the Government plan to mitigate its effects. Although the markets expect certain things, it is always very difficult to predict exactly what will be said and how the market will react so expect heightened volatility this afternoon.