The indicator represents expectations regarding new orders volume in the industrial economy sector. The industrial new orders growth is the sign of the growing economy. The orders growth leads to employment increase in production sector. The orders growth will lead to further production growth in manufacturing sector thus leading to the national currency and national stock market rise.
The reporting includes the survey of about 550 manufacturers, who evaluate the orders volume expectations within the next 3 months.
The index value above zero means that the orders volume increase is expected.
Effect of market
As a rule, it has a moderate influence on the Pound dynamics. When the actual value is considerably different from the forecast, it may cause a strong influence on the Sterling dynamics. In general, the index growth or the actual value rise, exceeding the forecast is a positive sign for the British currency.