The UK economy is growing, and recently releases of macros data have beaten economists’ expectations:
According the Office for National Statistics (ONS), UK industrial output has surged significantly above economists’ expectations; production increased 0.9% in February, compared to January with expectations of a +0.3% increase.
The better than expected data, gave sterling a bid in FX markets, surging to above 1.6700 to trade at session highs.
The British Chambers of Commerce (BCC) quarterly economic survey showed that the service sector exports were at an all-time high. The only concern is that the recovery is too reliant upon consumer spending, which could be reduced if interest rates are increased. This is because a rise in rates, would increase credit costs, and put pressure on household spending due to the larger mortgage costs.
The full BCC press release can be found here.
At 3pm (London) the NIESR UK GDP 3-month estmate will be released.