UK GDP and Mortgage Approval Data – November 2016

In FINANCE by 365reality0 Comments

Positive economic news from the UK shows that the economy grew by 0.5% in the quarter to September 2016. This however is slower than the 0.7% expansion in the previous period but better than market expectations, which were at 0.3%.



Mortgage approvals also saw a positive increase to 62,932, up from 60,984. This shows a clear sign of confidence in the UK economy and that banks are still loaning money. This contradicts all market fears regarding Brexit.



The negative news, however, is that the UK trade balance deficit widened to £15 .7 billion in quarter two of 2016. This is compared with £12 .2 billion in the previous period. In the last quarter, exports decreased by 1%, while imports increased by 1.3%.

The strength of the British pound is something that has a direct influence over imports and exports. With the UK Prime Minister beginning of the official Brexit procedures in March 2017, we may see a decline in the strength of the British pound, which will help boost exports.

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