Britain's brisk economic recovery is showing more signs of cooling after shoppers bought less, exporters took a hit from Europe's slump and banks approved the fewest mortgages in more than a year. Data released yesterday reiterated that the Bank of England is signalling that it is in no rush to raise interest rates, even as Britain's economic growth continues to outpace that of most other industrialised nations.
The pound touched its lowest level in a week against the dollar after official figures showed retail sales fell more than expected in September.
The Eurozone saw a marginal upturn in growth of business activity in October, the flash PMI results rose from September’s ten-month low of 52.0 to 52.2, signalling the first upturn in the pace of expansion for three months. Manufacturing output expanded at the fastest rate for three months, while growth of service sector activity was unchanged on the six-month low seen in September. In both cases, rates of growth remained historically weak and below the averages seen in the year to date. Although output rose at a slightly faster rate, new orders barely rose in October, registering the smallest monthly improvement since orders began rising in August of last year.
Fewer Americans filed applications for unemployment benefits over the past month than at any time in 14 years as an improving economy prompted employers to hold on to staff. The four-week average of jobless claims, dropped to 281,000, the lowest since May 2000, from 284,000 the week before. The reading for the week ended Oct. 18 climbed by 17,000 to 283,000
Sustained demand for goods and services is encouraging companies to retain workers, even as economic growth slows abroad. As a result, firings have hovered near historically low levels while gains in payrolls also bolster total income, giving households the confidence and the means to spend.
9:30 BST - GBP : UK Preliminary GDP expected to decrease to 0.7% form 0.9%
15:00 BST - USD : New Home Sales Expected to come in at 473K
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