020 7898 0500The day began with a disappointing update from Pendragon, the UK car dealership firm as they issued a profits warning. As Britain’s largest listed car dealer, the signs are worrying as it is the latest in a long line of UK companies issuing profit warnings. It should serve to increase fears that the UK economy is weakening.
There was more disappointing data, as the latest survey of British manufacturing by CBI showed that UK factory order growth slowed. Optimism about business conditions fell for the first time for a year in the last quarter.
It was, however, a pretty good day for sterling as it made gains against the US dollar and euro. The euro also weakened against the dollar, possibly in response to continuing situation between Spain and Catalonia.
It is a quiet day today, although tomorrow is relatively busy, as the mortgage approvals and GDP growth rate data is released. It will be interesting to see whether both or either of these releases can buck the recent trend of disappointing data.
