UK data remains firm – Lloyds Bank

Key to the shift in tone from the Bank of England has been the resilience of the economic data since the EU referendum notes Nikesh Sawjani, Research Analyst at Lloyds Bank.

Key Quotes

“Economic growth in the first full post-referendum quarter (Q3) expanded by 0.5% q/q, only modestly down from Q2 and quicker than the average quarterly pace of growth over 2015. Of particular note was that business investment – where the impact of uncertainty was supposed to be felt most acutely – posted its second consecutive quarter of expansion. Meanwhile, survey data at the onset of Q4 remain solid, with the composite PMI in November – across the manufacturing, construction and services sectors – the strongest since January 2016.”

“Meanwhile, further support to GBP came following the High Court ruling that Article 50 could not be triggered without a parliamentary vote and Donald Trump’s victory in the US election, both of which raised hopes of a less challenging outlook for the UK post-Brexit.”