020 7898 0500Thursday welcomed a hat-trick of positive Purchasing Managers’ Indexes (PMI) from the UK. Earlier in the week we saw the fastest UK manufacturing growth since 2014, with the construction sector following suit with a four-month high. Yesterday, the service sector completed the set, beating forecasts and posting the fastest growth since December 2016.
This is key for economic growth, as the service sector accounts for close to 75% of the economic activity of the nation. So, a positive start for the start of the second quarter (Q2), especially after the disappointing first quarter (Q1) gross domestic product (GDP) number which showed a loss in momentum. However, there will be some concerns for the housing market as mortgages fell for the second month in a row. This is despite the government’s Help to Buy scheme and lenders increasing their offers.
It’s all quiet on UK data for the final trading session of the week, with much of the focus on the drama surrounding this weekend’s French election. While it is unlikely we will see Le Pen spring an upset, chickens should not be counted until they have hatched, so let’s sit on the predictions until Monday morning.
Looking ahead to next week, the Bank of England Super Thursday event will see the release of their interest rate decision, quarterly inflation report, and update on growth and inflation forecast. They will also hold a press conference to answer any questions.
