UK: Weaker pace of inflation expected to boost real wages.
This article is originally referred from Orbex Market Preview.
The UK markets will be focusing on the wage data and GDP numbers this week which will cover the period of the December and the fourth quarter of last year respectively.
According to the economists polled, UK’s wages are expected to maintain a steady pace of increase.
Average weekly earnings including bonuses are expected to rise 2.5%, while weekly earnings excluding bonuses are expected to rise 2.3%.
This marks the same pace of increase seen in the previous month.
The UK’s unemployment rate is also forecast to remain at a four decade low of 4.3%.
This would mark a fifth consecutive month that the unemployment rate has remained this low.
The recent slowdown in UK’s inflation is expected to give a boost to UK’s real wages when accounting for inflation.
However, it would be too early to say whether consumer prices will come down in the future.
On Friday, the GDP data from the UK will see the initial estimates coming out.
Economists forecast that the UK’s economy expanded at a pace of 0.4% on a quarterly basis.
This marks the same pace of increase seen in the previous quarter ending September.
On an annualized basis, UK’s GDP is expected to slow 1.3%, down from 1.7% previously.
Original Source: Orbex Market Preview