UK: Focus on PMI numbers – RBC CM

Research Team at RBC Capital Markets, suggests that the UK’s November manufacturing and construction PMIs come at the end of the week, with the more significant services number following on Monday 5 December.

Key Quotes

“The October PMIs pointed to GDP growth of 0.4% q/q on the basis of those outturns being carried through the quarter. So we’ll be watching out in case these latest numbers shift expectations materially away from that initial benchmark. For manufacturing PMI we look for continued expansion to be signalled with a 54.5 forecast (from 54.3 last time) and in the construction survey a drop to 52.0 (from 52.6 last time). These sorts of results wouldn’t really alter the narrative that for the time being the UK economy is holding up better than expected post referendum, but we still anticipate a slowdown in 2017.”