020 7898 0500The big release from the UK on Friday was the GDP growth rate for the first quarter of 2018. Rather alarmingly, the figure came in at 0.1% which is the slowest growth since the fourth quarter of 2012. The Office for National Statistics said that the construction sector was the largest downward pull and while some of that can be attributed to the period of bad weather the UK suffered, it is still of some concern.
The pound tanked following the release and it really does raise the question of whether or not the Bank of England will vote to raise interest rates when they meet on 10 May. We know that inflation fell at the last reading and wage growth is now outpacing it for the first time in a while. Those facts, combined with the latest economic data, make it increasingly likely rates will be kept on hold.
Gfk consumer confidence for April came in worse than expected too at -9 which does not bode well. Brexit uncertainty is not helping matters and confidence is bound to be affected.
It’s a quiet start to the week but tomorrow we will see the manufacturing purchasing managers’ index for April. It is expected to dip a little from 55.1 to 55.0.
