From the UK, yesterday, Second Estimate GDP and CBI Realized Sales figures were released. UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.4% between Quarter 2 (Apr to June) and Quarter 3 (July to Sept) 2017, unrevised from the preliminary estimate of GDP. Services remained the strongest contributor to GDP growth in Quarter 3 2017, with the components of the output approach broadly unrevised from the preliminary estimate. The rate of growth in household final consumption expenditure strengthened to 0.6% between Quarter 2 and Quarter 3 2017, with car purchases recovering somewhat from a low Quarter 2. Business investment growth softened to 0.2% between Quarter 2 and Quarter 3 2017. GDP per head was estimated to have increased by 0.3% between Quarter 2 and Quarter 3 2017.
According to the latest CBI survey 39% of respondents reported that sales volumes were up on a year ago in November, while 13% said they were down, giving a balance of +26%. Retailers expect sales volumes to pick up again next month (+30%), with 39% expecting them to rise and 9% to fall. Rain Newton-Smith, CBI Chief Economist, said: “It’s great to see retail sales rebound this month after a big dip, but let’s be clear: our high streets are not out of the woods. Ahead of the crucial run up to Christmas, the weaker pound has pushed up prices and retailers are nervous about business conditions and are trimming their workforces.''
There will be no data releases both from the UK and USA tomorrow so we can expect another less volatile session.
