UK Economy

The UK economy expanded in August, according to a much-watched survey of activity.

Despite surging inflation, UK retail sales surprised by growing in July, although a much-watched measure of consumer confidence plummeted to an all time low.

GBP was higher after it was announced UK inflation hit 10.1% in July, leaving it more than five times higher than the Bank of England's target.

The British Pound remained supported against the Euro and Dollar following the release of new data from the ONS that showed UK wages faster than expected in June, as job vacancies remain elevated in a low-unemployment environment.

The UK economy contracted less than was expected last quarter but its foundations are weakening with financial distress growing as a constraint within the small business sector and lynchpin of the labour market.

GBP was supported near recent levels against both the EUR and USD on Friday following the release of some better than expected UK GDP data that suggests the economy approaches a tough winter period in better shape than feared.

The Bank of England's forecasts of a long and enduring UK recession has been branded unrealistic by Savvas Savouri, Chief Economist and Partner at hedge fund Toscafund Asset Management.

Workers are returning to the jobs market, headline inflation to plunge in 2023, Bank of England to end rate hike cycle sooner than expected.

The British Pound is set to remain under pressure as the UK economy faces significant headwinds, as confirmed by the latest retail sales figures.

GBP was seen trading firm on the day UK inflation data came in above expectations, confirming the Bank of England might have to go ahead with an outsized 50 basis point rate hike in August.

The surprisingly strong UK GDP data announced midweek leads economists at Goldman Sachs to revise higher their growth forecasts and lower expectations for a recession taking hold.

The British Pound was firmer in midweek trade, in line with some better than expected economic data.

The UK's current account deficit has long been an 'achilles heal' for the British Pound, and new data shows it has surged in size.

UK house prices will fall in the second half of 2022 as a surge in mortgage rates continues over the summer says Pantheon Macroeconomics.

War, surging commodity prices and China's Covid outbreak are the main drivers of a sharp economic slowdown that could result in a "mild" UK recession taking hold in 2023 says KPMG whose economists cut forecasts for UK economic growth in 2022 and 2023.

UK retail sales fell in May as consumers felt the strain of rising prices, denying the British Pound a much needed boost ahead of the weekend.

The British Pound has settled against the Euro and Dollar having registered sharp losses over the course of the past 24 hours, aided by a stabilisation in under-pressure global equity markets and fresh confirmation the UK labour market remains 'tight'.

Under pressure UK retailers say they see easing inflationary pressures ahead, but sentiment and business investment intentions remain resolutely forlorn.

Pound Sterling sunk like a stone following the release of PMI data that suggests the UK economy was close to contracting in May and conditions are deteriorating faster than was the case during the pandemic.

The British Pound turned higher following another better than expected economic data release.