UK: Focus on manufacturing and construction PMIs this week – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that UK’s Nov manufacturing and construction PMIs are out Thu/Fri, but the more significant services number comes next Monday.

Key Quotes

“The October PMIs pointed to GDP growth of 0.4% q/q on the basis of those outturns being carried through the quarter. So we’ll be watching in case these latest numbers shift expectations materially away from that initial benchmark. The latest semi-annual assessment of financial stability is also due. The government is granting the FPC statutory ‘powers of direction’ to enforce limits on mortgage lending in the buy-to-let sector, so there is likely to be attention on the Committee’s response at this point, although the FPC won’t be in a position use these new macro-prudential tools until Q1 2017 (given the parliamentary process for approval). The results of the 2016 bank stress tests will also be published.”