To start the week a plethora of data releases from the UK have painted a not too pretty picture of the underlying economy, despite growth bouncing back into positive territory following the contraction seen in the second quarter.
The preliminary GDP Q/Q read of +0.3% was a little below the +0.4% expected but the worse news came from the production readings in the manufacturing and industrial sectors which both contracted more than forecast, with month-on-month falls of 0.4% and 0.3% respectively. While the positive GDP reading means that the UK has managed to stave off a recession for another year there is little doubt that the economy is spluttering, with political uncertainty and a slowdown in global activity clearly taking their toll.