Rolling coverage of the latest economic and financial news, including the latest UK growth report after a widespread sell-off of financial stocks overnight
Alvin Tan of RBC Capital Markets predicts the UK grew by 0.1% in January – but that might not stop the economy shrinking during the current quarter….
January’s UK dataflow has been somewhat mixed, but the details of the January PMIs, the services PMI in particular, painted a more positive picture than the headline readings suggested in our view. We look for January GDP (Friday) to grow at 0.1% m/m.
Although such an outcome would still mean it is possible for Q1 GDP as a whole to fall, it equally means that any contraction will be small and likely temporary.
