UK's manufacturing confidence looking a bit soft

Recent surveys have shown a clear deceleration in manufacturing output growth in line with a softening of orders.

It is strange that the main reason for the weakness of orders appears to be a fall in export demand as this comes at a time when the euro area finally seems to picking up a bit of speed.

The manufacturing PMI survey cited the strength of the exchange rate and subdued global market conditions as being the causes.

Neither of those factors is likely to have improved in early June but the decisive election result will have boosted domestic demand and business confidence. Accordingly,total orders are expected to rise significantly and output expectations also to have increased.