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%.

uk-gdp-growth-nov-2016

 

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.

 

uk-mortgage-approvals-nov-2016

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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