UK: Q3 growth in the limelight this week – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that this week sees the release of UK’s Q3 growth (the first quarter post referendum) which is likely to garner maximum investors’ attention.

Key Quotes

“After strong growth of 0.4% m/m in the service sector in July, we revised our forecast for Q3 GDP to 0.3% q/q, as this development also coincided with a decisive bounce back in the PMI surveys following the initial decline. At this early stage, there won’t be a breakdown of the expenditure components, so we will remain in the dark for another month about the extent to which business investment has been hit by post-referendum uncertainty.”