Market Comment - UK exports yet to reflect sterling tailwind

Davy Research
/Read Important Disclosures

Today sees the release of November data for UK trade, industrial production and construction output. While much has been made of the positive impact of weaker sterling on UK exports, this has yet to be reflected in the trade data – goods exports were down 3.3% in the year to October. Surveys suggest an uplift in exports is imminent, but trade growth may not be enough to offset a slowdown in the domestic economy, already apparent in a 2% decline in business investment in the year to Q3 2016 and a softening labour market.