Daily Market Report - 28/10/2015

The UK economy's growth slowed in the third quarter of the year being weighed down by the performance of the construction and manufacturing sectors. Gross domestic product grew by 0.5% between July and September down from 0.7% in the second quarter. The rate was also lower than the 0.6% growth predicted by analysts.

Part of the slowdown was due to the biggest fall in construction output in three years, a drop of 2.2%. This drop in output could have been influenced by particularly wet weather in August. The service sector, the biggest part of the economy, grew by 0.7%. However, output in the manufacturing sector declined by 0.3%. Furthermore, Chancellor George Osborne said there were more "tough decisions" to come and that his Autumn Statement, due on 25 November, would include "long-term investments for the future".

Durable goods orders were -0.4% against an expected 0%. In addition, Consumer Confidence came in short - it was forecast at 102.5 but came in at 97.6. Consumers were less positive in their assessment of present-day conditions, in particular the job market, and were moderately less optimistic about the short-term outlook. Despite the decline, consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near-term.

Key Announcements
USD – 18:00 : US Federal Reserve Interest Rate Decision expected stay unchanged at 0.25%