The Confederation of British Industry (CBI) released its industrial order books balance on Thursday. The CBI industrial order books balance dropped to -5% in May from 1% in April, missing expectations for a rise to 3%.
The decline was driven by lower exports. The export order book balance rose slightly to -7% in May from -11% in April.
The balance for output volumes for the next three months fell to 15% in May from 16% in April.
The CBI director of economics Rain Newton-Smith said that manufacturers in the U.K. expect the growth to continue and export orders to improve.
"Some of this could be down to an improvement in the Eurozone's momentum - but the strengthening pound is still proving quite a challenge," he noted.