Andy Scott, associate director at HiFX, comments on the latest UK growth figures
Andy said: “Today’s GDP growth figures were in-line with expectations but sterling gained after the release which indicates the market was concerned by the potential for them to come in lower, and was relieved when they didn’t.
“Whilst the economy cooled in Q3, growth was still solid. The bigger concern I think lies in the current quarter where were starting to see a slightly more pronounced slowdown as external weaknesses weigh on areas such as manufacturing. We also have slowing house price growth which may result in a more cautious consumer, affecting domestic demand and we know that price pressures are diminishing which will keep the Bank of England on hold for longer.
“Overall, in comparison to our Eurozone neighbours we are in much better shape in terms of the economic outlook, but there are concerns nevertheless and sterling’s upwards momentum could well slow with the economy.”
