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UK Consumer confidence falls

• Posted by Shyam Gokani in Uncategorised
• November 30, 2016
• No Comments

Sterling steadied in the middle of a 3-cent range it has held for most of the past month this morning.

Confidence among British consumers fell in November to its lowest level since just after voters decided in June to leave the European Union, the regular survey by market research firm GfK showed today.

Investors were also digesting the need for more capital at British bank RBS after it failed the Bank of England’s latest round of stress tests.

With the prospect of Brexit talks next year set to weigh on business and the economy, and the risk that banks will relocate business out of the UK, neither of those were read as positive overall signs for UK Plc.

Sterling last week racked up its longest run of weekly gains against the euro since early 2015, helped by a run of data which has broadly failed to deliver signs of the rapid slowdown many had expected after the June referendum.

Data on Tuesday showed lending to Britons expanded last month at the fastest annual pace in 11 years, while mortgage approvals were stronger than expected.

Analysts widely expect the pound to fall further as talks on the departure from the European Union are launched in the first quarter of next year, pointing to the likelihood that the economy will slow further.