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Strong UK GDP data, Nissan opts to stay

Thursday, October 27, 2016 - 01:28

Britain's economy barely slowed in the third quarter despite the Brexit vote shock. As Laura Frykberg reports, it's further diminished the chances of a fresh interest rate cut by the Bank fo England.

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Britain's Finance Minister - in good spirits Perhaps a reflection of the release of some favourable figures. UK GDP rose 0.5 percent between July and September. Comfortably above forecasts. SOUNDBITE (English) BRITISH FINANCE MINISTER, PHILLIP HAMMOND SAYING: "Very pleased to see that the economy is still resilient, very strong third quarter growth, that tells us that we go into the period of negotiation for our exit from the EU from a position of strength with the economy doing very well." It was largely led by the service industry. Tourism was up - Sterling's slide luring travelers. It's hurt exporters using the currency though. The figures show a drop in manufacturing and construction. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "I think the next three, six, nine months is going to see a slow deterioration in the economic data legacy. It starts with stories that we have already had coming through, the likes of Tesco having these issues with its producers, wanting to put up prices due to the negative implications of the currency moves." Something the Bank of England is well aware of. It decides next week whether to cut rates further. These figures may stop that happening. Sterling jumped to a one week high on the news. And Nissan broadened the smile on Hammond's face too. It's promised to build more cars in Britain despite the Brexit vote.

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Strong UK GDP data, Nissan opts to stay

Thursday, October 27, 2016 - 01:28