British Economy Slowed Growth in Early 2018

Forex News

The UK economy slowed sharply in January. The Purchasing Managers’ Index (PMI) for the country's services sector slowed to a 16-month low of 53.0 from 54.2 in December. Such data may cast doubt on the growing expectations of investors that the Bank of England may start raising interest rates again in the coming months.

Taking into account the weak reports on the spheres of industry and construction, today's data suggest that the sixth-biggest economy in the world rose last month at the weakest pace since the voting for Brexit. Official data showed that the UK economy grew by 0.5% from October to December, which is the fastest rate in 2017.

It is expected, that the Bank of England will publish new economic forecasts on Thursday. Investors will monitor any signs that rates may rise in the coming months, after the UK central bank increased borrowing costs for the first time in ten years in November last year.