U.K. economy likely to have expanded 0.4 pct in Q4 2017

In the recent quarters, the U.K. economic growth has slowed partially due to slower growth in consumer spending. The sharp depreciation of sterling in the immediate aftermath of the Brexit referendum led to inflation shooting up. Higher inflation battered growth in real income, which has dragged consumer spending growth.

Investment spending has also taken a hit, partially due to uncertainty related to Brexit, stated Wells Fargo in a research report. The preliminary data for the fourth quarter is set to be released on Friday. According to a Wells Fargo research report, the U.K. economy is expected to have expanded 0.4 percent in the December quarter.

Recently, the labor market report was released. The jobless rate in the U.K. is currently at 4.3 percent, the lowest in 42 years. However, much like the U.S. a low jobless rate has not yet translated into considerable wage acceleration. Average weekly earnings rose just 2.3 percent in the August-October period on a year-on-year basis.

At 20:00 GMT the FxWirePro's Hourly Strength Index of British Pound was neutral -18.537, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 25.3226. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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