Latest BOE Regional Agents Survey just published 8 Nov
- Growth in activity had remained broadly stable.
- Manufacturing output growth had risen again, with export supply chains supported by the past fall in sterling and some signs of increased domestic sourcing.
- construction output growth had eased.
- Services turnover growth remained moderate
- expectations for 2018 pay settlements between 2.5-3.5%, slightly higher trend
- London housing demand affected by overvaluation concerns
Says the BOE:
A survey of investment intentions pointed to continued modest growth in spending over the coming year, at a similar rate to that seen over the past twelve months. Expectations of investment growth in the following two years were weaker.
Recruitment difficulties had intensified and were above normal in a range of activities, alongside continued modest employment growth. As a result, pay growth had edged up and was expected to be somewhat higher in 2018 than this year. But non‑labour input cost inflation had eased and both output and consumer price inflation were unchanged.
Understandable caution being expressed by the agents results as we still wait on any solid progress in the Brexit talks.
Full report here
GBPUSD 1.3136 from 1.3126 with EURGBP steady around 0.8830