Home > Resource Hub > Daily Market News > UK Economy Doing OK

UK Economy Doing OK

UK Economy Doing OK

After the lunacy of Black Friday and the frenzy of Cyber Monday, we now greet what is commonly known in retail circles as “Tuesday”. Hopefully, we can now all forget about buying Christmas presents until we remember on Christmas Eve that we still need to buy our wives something and the only place open is the local petrol station. Not that I’m talking from personal experience of course. It will be interesting to see what impact these past two shopping days have had on the economy and whether that’s it for the Christmas rush, or we see further sales and the shopping madness continue.

We had better than expected figures out of the UK yesterday as manufacturing expanded faster than predicted and even though mortgage approvals fell to the lowest for more than a year, they were still better than expected. This added to the current feeling that the UK still has one of the strongest global economies. Without getting too excited, it is felt that the UK economy is still doing “ok”. Today’s PMI stats should further hint at the current situation and although not expected to be overly positive, anything cautiously optimistic could hint at gradual improvement in the UK economy and start the tedious and pointless question of an interest rate hike at some point in the future.

Overnight, the Royal Bank of Australia kept its interest rates on hold in a move that surprised no one. The Australian Dollar rose by 0.4% on the back of what was said to support this decision. There was a call for stability in interest rates, comments on how monetary policy remains accommodative and on how the Aussie Dollar remains overvalued  and this needs to be rectified to achieve a balanced growth in the economy.

The UK PMI is the main data out of the UK today, with the Eurozone being eerily silent and Janet Yellen speaking in the US.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.