03/04/2017 - UK Households Savings Fall to Record Low

GBP

Britain’s households are saving less than at any time since records began as household disposable incomes slide. The UK saving ratio shrank to 3.3% in the last quarter down from 5.3% in July-September showing the smallest savings ratio since it started being measured in 1963.

Household spending also climbed by £2 billion during the final three months of 2016. Year-on-year, GDP for the last quarter also edged up 1.9 per cent, slightly below economists’ estimates of two per cent – the weakest expansion since 2012.

The UK’s GDP increased by 0.7 per cent in the fourth quarter of 2016, driven by continued strong consumer spending and  consumer focused industries as well as strong exports. Consumer spending rose as consumers benefitted from high employment while exports of goods and services were lifted by the weakened pound.

EUR

Eurozone inflation in March fell  more than expected on Friday, after a prolonged period of rising prices. A preliminary reading of the consumer price index showed a 1.5% rise in March compared to the same month last year, down from the 2.0% rise in February and shy of the 1.8% the market was expecting. Core CPI, which excludes the more volatile elements of the CPI inflation measures such as energy and food prices, rose only 0.7%, its lowest reading since April 2015, when it had been forecast to stay around at around 0.9% .Part of this slowdown in inflation can be explained by the sharp drop in the oil price seen in March.

Key Announcements

10:00 - EUR: Eurozone Unemployment Rate (Feb) Expected to decrease to 9.6% from 9.5%

15:00 - USD: US ISM Manufacturing (March) Expected to fall to 57.0 from 57.7