British economic growth figures expected to be tame
The Office of National Statistics is to publish preliminary data on the UK’s economic growth for the third quarter today. It will likely show a lacklustre performance which is due to continue into 2019 as investors remain cautious over the prolonged Brexit negotiations.
The forecast is expected to confirm GDP growth of 0.3%, a repeat of the last two quarters which were the weakest since the first six months of 2012. The pound’s 15% depreciation since the 2016 Brexit vote has seen the consumer price index rise and business confidence sink. This comes ahead of a probable interest rate hike by the Bank of England next week to maintain inflation near the 2% target.
With many Conservative’s pushing for “Brexit now”, May’s government cannot let OECD pessimism over the slim prospects of a deal hamper the negotiations, which could see the economy take a £40bn slash by 2019 if no deal is reached.
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