Following a weak run of data, evidence that the services sector continued to grow at a robust pace in August provided some reassurance that economic growth will maintain a steady pace for the remainder of the year, in line with our forecast. Meanwhile, inflation has continued to be a headwind to real consumer spending growth. But it should gradually ease ahead. Finally, the MPC will leave rates on hold next week. Indeed, given the uncertainty around the terms on which the UK will leave the EU in March, we think that the MPC will wait until May before hiking again.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services