Signs of a continued slowdown in the UK have emerged as the Bank of England revises its growth forecasts and industrial output slips.
Editor’s Remarks: Keeping interests rates constant at 0.25%, BoE nudged its GDP growth forecast for 2017 from 2% to 1.9%, but raised it by 0.1% for 2018 and 2019. It admitted it had been too optimistic about the first half of the year – with real wage growth coming in lower than expected, for example – but added that it expected the squeeze to ease later in the year before turning to improvement in 2018. Meanwhile, data showed month-on-month industrial production fell 0.5% in March, putting more pressure on April’s positive PMIs to ‘come true’ in output terms. The general picture is of an economy treading cautiously out of a temporary slowdown in Q1, but with much of the future riding on Brexit talks.
What to Watch: Mark Carney, Philip Hammond, UK Inflation, UK Growth, GBP/USD