The pound struggled yesterday after official figures revealed the UK economy has posted its weakest monthly growth figures in three years, as a ‘Brexit hangover’ hits demand. Britain’s economy shrank far more sharply than expected in April as car factory closures planned in case of a no-deal Brexit took their toll. UK GDP shrank by 0.4% in April, rather worse than economists expected, dragging the rolling three-month growth rate down to 0.3%. The decline was due to a contraction across manufacturing, the worst decline since 2002, as UK car producers implemented planned shutdowns in case Britain had crashed down of the European Union at the end of March.
The latest monthly fall in the economy’s growth was four times larger than analysts had forecast and marked the second consecutive month of contraction for the UK’s economy after a 0.1 per cent drop in March. The UK economy has also been weighted down by recent trade tensions, with America and China’s tit-for-tat tariffs dampening global growth.
09:30 – GBP: Average Earnings Index expected to decrease to 2.9%