UK: Key economic reports for next week - Danske Bank

Analysts from Danske Bank take a look into next week economic reports in the United Kingdom that include GfK consumer confidence, the PMI manufacturing and the PMI construction. 

Key Quotes: 

“In the UK, we have some important survey indicators due for release next week. On Wednesday (13:00 CET), the GfK consumer confidence and Lloyds Business Barometer indicators, both for November, are due out. Consumer and business confidence has rebounded back to the levels prevailing before the EU vote. Most interesting is it that business confidence has rebounded, as it suggests that investments so far have been resilient to Brexit uncertainties. We think both indicators will stay around current levels, as there is no news to indicate they may have been pulled in either direction.

“On Thursday, the PMI manufacturing index for November is due out. The index rebounded significantly after the initial drop in July just after the EU vote, supported by the weaker GBP and higher global PMIs. As global manufacturing PMIs are increasing and the UK manufacturers still benefit from a weaker GBP through more export orders (despite GBP having strengthened in November), we think PMI manufacturing could increase further.”

“Currently, we think there is limited upside potential for the construction sector, and we estimate the PMI construction index (due Friday) to be mostly unchanged at 52.6 in November.

“On Wednesday, the Bank of England is due to publish its Financial Stability Report. As financial markets have calmed since the EU vote, we do not expect any major news in the report.”