GB100 Analysis: Weak British data bearish for GB100

By IFCMarkets

Weak British data bearish for GB100

UK economic data in the last couple of weeks were mixed. The trade surplus rose in May, however the GDP contraction for May over the same period a year ago was bigger than forecast. At the same time as average earnings including bonuses declined less than expected in May the inflation was higher than expected in June. On the negative side the Confederation of British Industry’s reported decline in factory orders was bigger than expected for July. And latest spending data for mid-July show UK consumers remain cautious despite easing of lockdown for some sectors, according to figures from Band of England (BoE) and on card payments. Sharp improvement in spending on some travel and food and drinks outside the home was offset by deterioration for groceries and in hardware and garden stores. Jonathan Haskel, an external member of the BoE’s Monetary Policy Committee said these spending patterns likely suggest a slower recovery than the so far “V shaped” assessments by BoE. Deteriorating economic data are bearish for GB100.

Summary of technical analysis

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