Earnings Expected to Increase Again in Britain Despite Brexit - Forex News by FX Leaders

Earnings Expected to Increase Again in Britain Despite Brexit

Posted Tuesday, August 13, 2019 by
Skerdian Meta • 1 min read

The UK economy has turned upside down as the economic data as shown in the recent months. The economy was holding on well in Q1, but in Q2 it contracted and many analysts now predict a recession this year. At least, two consecutive negative quarters.

The real economy, such as manufacturing, the industrial sector, construction and services, are all in contraction. Yet, the other part of the economy looks to be in great shape. The unemployment rate is at 3.8% which is a great level, below the 5% natural rate.

But what’s more puzzling is the fact that earnings continue to grow at considerable speed and the speed is getting stronger. Earnings increased from 3.1% in April to 3.4% in May as the report released last month showed.

Today they are expected to increase again by three points to 3.5% for June. This increase in earnings is really impressive even if the economy is growing pretty fast. So, it seems strange that earnings are growing at this pace now that the economy is contracting, as the GDP report for Q2 showed. Well, let’s see if earnings will meet expectations today. If they do, the GBP is likely to jump for a while, which would be a good opportunity to sell it.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of