020 7898 0500The headline release from the UK on Friday was the final reading of the GDP growth rate for the second quarter of 2018 which, quarter-on-quarter, came in as expected at 0.4%. This is up from 0.1% the previous period and is reasonably encouraging. On a year-on-year basis, the figure climbed to 1.2% from a six-year low of 1.1% in the previous period, but it was below expectations of 1.3%.
September’s Gfk consumer confidence index slipped to -9 from -7 the previous month and worse than the -8 economists had expected. The pound made some gains against the euro, as the single currency struggled against the backdrop of Italy’s deficit plans. It was a different story against the dollar which continued its recent period of rude health. The pound is now nearer $1.30 than $1.31 and it will be interesting to see in which direction the next big move will go.
Monday starts off with a bit of a bang in the UK, with Nationwide housing prices for September on the schedule this morning. On an annual basis, prices are expected to dip to 1.9% from 2%. We will also see mortgage approvals for August and the manufacturing PMI reading for September. The figure is expected to dip a little to 52.5 from 52.8 the month before.
