The pound was once again under renewed pressure on Friday as the UK economy slipped into surprise contraction in quarter 2, the first time since 2012.
The slowdown was created by a strong hangover from pre-Brexit stockpiling which occurred in the months running up to March 29th, the original deadline. The pound edged to a 31-month low against the US dollar. The news does not bode well for Johnson’s government who continue to highlight their intent on preparing for a potential no-deal, with many speculating that pledges for investment into various areas of the economy is all in anticipation for a snap general election.
It’s a big week for UK economic numbers with 3 important tier 1 reports all set for release on consecutive days. Firstly, Tuesday sees the latest employment figures while Wednesday hosts an up to date inflation print. Finally, on Thursday, UK retail sales is due which will give us a good idea just how confident the consumer is in the run up on the 31st October deadline.
Written by Viv Savani. 8:36am, August 12th 2019
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