Weak UK economic data reported

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Weak UK economic data reported

The Office for National Statistics (ONS) has been busy with their data releases this morning.

Three sets of data reported…

(1) The UK’s trade deficit widens in May. The deficit for goods and services increased by £1 billion to £3.1 billion according to the ONS.

(2) UK construction output fell in May – the steepest fall since October 2015. Expectations was for it to rise.

(3) UK manufacturing output goes in to reverse. Analysts were expecting an increase.

The effect of this weak data has been to push the pound down. Sterling stumbles and was trading close to $1.29. Will this now mean a UK rate increase is less likely any time soon? Is this summer/autumn now out of the question? The Bank of England (BOE) certainly have more to think about.

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