UK next week: PMI and Brexit - Danske Bank

Analysts from Danske Bank explained that in the UK, main economic events next week includes PMI Manufacturing and potential Brexit developments. They expect the PMI to increase in line with higher euro area PMIs.

Key Quotes: 

“In the UK, PMI manufacturing for November is due on Friday. As the equivalent index for the euro area rose to 60 (the highest since 2000), we also estimate the UK index rose to something like 58.0, which, however, is still below the euro index. The UK manufacturing sector is benefiting from increasing global demand despite Brexit uncertainties.”

“Next week, also keep an eye on the development on Brexit, as the EU and UK continue to negotiate behind the doors ahead of the EU summit on 14 December, where the EU has to decide whether there has been ‘sufficient progress’ in phase 1 (divorce bill, Irish border and citizens’ rights) to move to phase 2 (future relationship). The divorce bill and what to do about the Irish border are the two main obstacles.”