The squeeze of higher prices forced British shoppers to cut back their spending last month at the fastest pace for any October since 2008, a reminder of the strain on household budgets even before the Bank of England raised interest rates. Payments company Barclaycard also reported weak consumer spending, with a split between spending on essentials and spending on discretionary items.
Governor Mark Carney has said the worst of the squeeze on households is ending and the impact of the rate increase will not be big for households, whose spending is the main driver of Britain’s economy.
House prices across the UK are rising strongly and will continue to do so in the months ahead, a major bank survey has reported. In the year to October, prices rose by 4.5%, up from 4% in September, the fastest rise since February. It brings the average price of a UK house to a new record high of £225,826. Cheap mortgages and high employment rates were likely to continue to support house prices over the coming months the report said.
The European Union will start working out today what all the member nations want from a Brexit transition deal, aiming for a united stance that it can present to the U.K. once talks break out of the current deadlock.
European envoys will discuss the format and length of the transition. They will also discuss the future trade relationship, and what the EU wants in return for the transition deal, which U.K. businesses consider crucial to avoid chaos on Brexit day in March 2019. While the 27 have maintained a united stance in the first phase of talks, divisions are more likely once negotiations move on to the future relationship as each country will have different trade priorities making it increasingly more difficult to gain a consensus.
08:00 – EUR: ECB Non- Monetary Policy Meeting