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UK consumer confidence on the up

• Posted by Shyam Gokani in Uncategorised
• August 31, 2016
• No Comments

Sterling rose this morning, boosted by improved consumer confidence and rising British house prices in August, adding to growing signs that the economy was holding up well despite a shock vote to leave the European Union in June.

Market research firm GfK said its gauge of consumer confidence rose to -7 in August from -12 in July, when it suffered its sharpest drop in over 26 years. August’s level was still the second-lowest since early 2014.

And mortgage lender Nationwide said today that British house prices rose 5.6 percent in August compared with the same month last year and faster than July’s 5.2 percent. Economists polled had expected house prices to rise 4.8 percent.

Manufacturing, construction and services sector purchasing managers’ surveys will be released at the start of September and many expect activity to bounce back a bit from the Brexit shock.

Traders will eye a cabinet meeting that Prime Minister Theresa May will hold after a few weeks of holiday calm. The meeting comes amid growing speculation on when Britain will formally start divorce proceedings. May has said she will not trigger Article 50 of the EU’s Lisbon treaty to start the exit procedure until next year.