PREVIOUS TRADING DAY EVENTS 14 June 2023

Announcements

Yesterday, the real Gross Domestic Product GDP figure for the U.K. was released and shows that it is estimated to have grown by 0.2 in April 2023, after a fall of 0.3 in March 2023, despite contractions in manufacturing and construction.

Looking ahead, we continue to expect GDP in Q2 as a whole to be unchanged from Q1, said Samuel Tombs, chief UK economist at consultancy Pantheon Macroeconomics.

Public sector strikes have continued to rumble on, and the lost working day for the Kings coronation probably inflicted a 0.2 percentage point blow to GDP in May, Tombs added.

The government would stick to its plan to halve inflation this year which means that hikes will definitely continue. No pause here.

Source

httpswww.reuters.comworldukukeconomyshows02growthaprilons20230614

The monthly PPI figure was reported quite low negative change yesterday indicating that prices are indeed dropping. The PPI for final demand declined 0.3 in May, seasonally adjusted, as per the U.S. Bureau of Labor Statistics. 

The report from the Labor Department also showed that the annual increase in producer inflation last month was the smallest in nearly 212 years. 

As per yesterdays report at 2100, the Federal Reserve Fed kept interest rates unchanged for the first time since March 2022 when the U.S. central bank started this aggressive monetary policy tightening campaign. In new economic projections, this signalled that…