Next Week Is Full Of Important Information From Great Britain
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After the death of Queen Elizabeth II, an important economic week comes for the British Pound. From Monday ,the market and will be watching information coming from the UK.
On Monday, the UK will publish data on gross domestic product (GDP). Since March, the indicator has been in a downward trend. Only in June did the trend reverse. After good results in June, it returned to decline in July. The latest reading shows that GDP is at -0.6%. Will the trend reverse?
It estimates the size of and growth in the economy. As we can see, the UK economy
Source: investing.com
United Kingdom Monthly Gross Domestic Product (GDP) The 3M / 3M change will also be published. The last reading shows that the change in the analyzed period was at a notable level (-0.1%), but was higher than expected (-0.3%). As you can read from the chart, the indicator has been in a downward trend since March.
Rolling three-month data are calculated by comparing growth in a three-month period with growth in the previous three-month period, for example, growth in June to August compared with the previous March to May.
Source: investing.com
U.K. Manufacturing Production
The change in the value of production produced by producers will also be published.
This is an important indicator as it accounts for 80% of total production. In July, this ratio dropped sharply to -1.6% from 1.4% in June. It is expected to rebound, with the index hitting 0.4%.
Source: investing.com
Unemployed and Earnings
On Tuesday, data will be posted about the change in the number of unemployed people in the U.K. during the reported month. At the beginning of the year, the number of unemployed was below -30K. In May, the number of unemployed increased and the unemployment rate was this month at -19.7K. The recent July reading shows that the May trend continued and the indicator was at -10.5K. Did the May trend continue also in August?
Source: investing.com
The Average Earnings Index will be released on the same day as the unemployment rate. Average earnings figures are a good indicator of the growth of personal income for a given month. As data from March (7.0%) shows, the indicator will continue its downward trend. The last reading was 5.1%. It is expected that in August the index should reach the level of 5.2%, which is slightly higher than in July.
Source: investing.com
The CPI index in UK
On Wednesday, the most important information from the UK will be the CPI index.
The index of changes in the price of goods and services in the UK in the current year is read positively. Month by month results are higher than forecasted. In August, CPI is expected to maintain its July level of 0.6%.
Will there be a positive reading for the GBP also this time?
Source: investing.com
Will Rates stay the same?
The decision on interest rates will be made on Thursday. Forecasts show that the UK will not follow the global trend of raising rates. The rates are expected to remain unchanged at 1.75%. Interest rates in Great Britain were gradually increased by 25 bp. In February this year, rates were raised by 25 bp to 50% for the first time. The same decision on the amount of 25 bp was made in March, May and June. In August the decision to raise was the same, but this time the rates were raised by 50 bp.
At the end of the week, the UK will communicate information on retail sales.
It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. Looking at the last three periods, retail sales are also negative, but the trend is upward. The deviation from the sensible reading took place in July. Retail sales were above zero at 0.3%. Sales are expected to drop below zero again in August to -0.6%. This would be the lowest level since March (-1.4%).
Source: investing.com
A positive reading of macroeconomic data may bring market benefits to the British pound.
