Market comment - Will UK labour market continue to hold up?

Davy Research
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This morning’s key release is UK labour market data for June, expected to show pay growth accelerating to 3.8% which should support sterling. Thus far, jobs growth has remained resilient despite increasing evidence from surveys that weak GDP growth is starting to affect hiring, especially in construction and manufacturing. The single-month measure (headline figures are three-month averages) suggests that this trend will continue in today’s data.