Also, BoE released its Financial Stability Report. BoE Governor Carney said that higher capital costs ultimately passed to borrowers and that no new wave of capital regulation coming. He added that UK banks are most of the way there on capital, well ahead of 2019 deadline. However, global growth remains subdued and global environment is unforgiving, while public, private balance sheets remains stretched and capital buffer is not designed to retrain credit growth.
From the UK, on Wednesday, UK Construction PMI data was released. At 55.3, the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index was down from 58.8 in October and signalled the slowest expansion of business activity for seven months. Analysts were anticipating smaller decrease to 58.4. Aside from the pre-election slowdown seen in April, overall output growth was the weakest since mid2013.
From the UK, on Thursday, Services PMI data was released. UK service providers looked set to end 2015 on a positive note, according to the latest PMI survey data from Markit and CIPS. The Business Activity Index signalled growth of service sector output in November, taking the current spell of expansion to one month short of three years. The Index rose for the second month running to 55.9, from 54.9 in October, signalling the fastest rate of growth since July. Analysts were predicting smaller increase to 55.1. The average for the fourth quarter so far matches that seen over the third quarter as a whole (55.4). In comparison, the Index has trended at 55.2 since its inception in July 1996.
This week markets will be looking at:
Industrial Production (Tuesday 10:30)
Official Bank Rate/Asset Purchase Facility (Thursday 13:00)
MPC Official Bank Rate Votes/Monetary Policy Summary (Thursday 13:00)
