U.K. economic growth for the third quarter is set to be released tomorrow. According to a Wells Fargo research report, the economic growth is likely to have accelerated in the third quarter. In the second quarter, the economy had grown 1.2 percent year-on-year.
“If our full-year forecast for U.K. GDP growth of 1.2 percent is realized, it would be the weakest annual pace of U.K. GDP growth since 2009”, said Wells Fargo.
Looking at the activity figures, it implies slightly diverging performances among different sectors of the U.K. economy. Consumers in the U.K. have benefitted from a rebound in a wage growth and receding inflation, with retail sales growth having rebounded in recent months.
In the meantime, there are signs of softness in the business sector, with manufacturing output growth trending lower. With the uncertainty of Brexit expected to persist in the months ahead, it is difficult to envision a considerable rebound in U.K. investment activity.
“We expect real GDP to have risen 0.5 percent on a sequential basis in Q3, consistent with a 1.4 percent year-over-year growth pace”, added Wells Fargo.
At 19:00 GMT the FxWirePro's Hourly Strength Index of British Pound was slightly bullish at 52.8541, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -39.8785. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex