UK data takes a backseat to key election poll
The latest batch of economic data from the UK provides a fairly negative view on the recent levels of activity with the main takeaway being a flat GDP reading for the month of October. After two consecutive monthly contractions, a reading of 0.0% does signal some improvement, but this should hardly be celebrated and it’s becoming abundantly clear that economic growth has essentially ground to a halt.
After a return to growth in Q3 following the contraction in Q2 a technical recession will be avoided for now, even if the fourth quarter delivers a negative reading, but on the whole, this is reflective of an economy that is barely keeping its head above water. Read more”¦
UK: Most important election coming up – TDS
James Rossiter , head of global macro strategy at TD Securities, points out that the UK’s Thursday election has been called the “most important election for a generation” as it could decide the path for Brexit over 2020 and beyond.
Key Quotes
“Our base case is for the Conservatives to retain power with an enhanced majority of at least 36 votes, enabling them to pass legislation by a comfortable margin – including the Brexit Withdrawal Agreement – without having to depend on support from other parties or rebellious factions within the Conservatives.” Read more…
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