There was an abundance of fear after the vote to leave the European Union that the UK economy would struggle to perform. However, as data has shown in the last few months, the UK has weathered the storm better than expected. The consensus forecast among economists is for the UK to have exhibited 0.30% growth during the third quarter. This figure coincides with the estimate from the Bank of England, which last month raised its growth forecast for the third quarter from 0.10% to 0.30%. If that number materializes, it should provide some much needed boost for the FTSE 100 equity index and the Pound. Nevertheless, the economic outlook over the medium to long-term continues to be fragile considering the increased risk that the UK will lose access to the European single market. The Pound is under pressure heading into the announcement, with EURGBP moderately higher on the session.
UK Growth in Focus
Daily Analysis - 27/10/2016