20 Jan 2016
UK labour data highlights the positives - ING
FXStreet (Delhi) – James Knightley, Research Analyst at ING, notes that the UK labour data looks pretty decent with employment growth in the 3M to November rising 267k and the unemployment rate falling to 5.1%, both are better than the 235k and 5.2% consensus predictions.
Key Quotes
“However, wage growth did slow close to expectations (ex bonus the 3M average is now 1.9%YoY although the single month reading did rise to 2.1% from 1.6%). Consequently, it is an encouraging report that should keep consumer confidence and spending running at healthy levels.
However, with BoE Governor Mark Carney suggesting there is little appetite for a rate hike any time soon and with the prospect of a Brexit vote set to weigh on activity it looks as though November remains the earliest possible opportunity for a rate rise.”
Key Quotes
“However, wage growth did slow close to expectations (ex bonus the 3M average is now 1.9%YoY although the single month reading did rise to 2.1% from 1.6%). Consequently, it is an encouraging report that should keep consumer confidence and spending running at healthy levels.
However, with BoE Governor Mark Carney suggesting there is little appetite for a rate hike any time soon and with the prospect of a Brexit vote set to weigh on activity it looks as though November remains the earliest possible opportunity for a rate rise.”