UK growth story under scrutiny - BBH

By FXstreet.com | July 11, 2014 AAA

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman examines the UK's growth 'story'.



Key Quotes



"The UK this week has reported softer-than-expected industrial and manufacturing output figures, easing in some house price indices, a wider trade deficit, and today an unexpected decline in construction output. It fell by 1.1% , whereas the market, encouraged by strong PMI readings, had forecast a 0.9% increase."



"This sector accounts for only 6% of GDP, but it is consistent the evidence suggesting that UK pace of growth is levelling off. Next week’s data, which includes inflation, employment and earnings."



"On balance, these are unlikely to encourage expectations of a rate hike this year. That said, dissents at the BOE are expected to begin either next month or September, in favour tighter policy."



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