DailyFX European Market Wrap: Is the British Economy Losing Momentum?
Growth in Britain's construction slows, Eurozone retail sales rise and we await the upcoming meeting between US President Donald Trump and China's President Xi Jinping.
There is some concern that the British economy has lost some of its momentum after the Construction Purchasing Managers' Index (PMI) dropped back to 52.2 from 52.5 in February. Marking the slowest rate of growth since a recent pick-up for the sector began in September. The survey by Markit showed growth among factories also weakened in March.
Meanwhile retail sales across the eurozone have risen, in another sign that the European economy is strengthening. retail spending rose by 0.7% during February, 1.8% higher than a year ago according to Eurostat. Spending on ‘non-food products’ was 2.8% higher, year-on-year, while spending on food, drink and tobacco rose by 0.8%
The Bank of England has warned today that longer interest-free periods and an increase in loan limits are contributing to the fastest rate of expansion in consumer credit since 2005. The bank’s financial policy committee also said “The recent rapid growth in consumer credit could principally represent a risk to lenders if accompanied by weaker underwriting standards,” and concluded that risks to the UK’s overall financial stability remain elevated.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.