UK economic outlook improves, again

Today the UK welcomed fresh data that showed Britain’s trade deficit had narrowed by more than forecast in addition to industrial and manufacturing production beating expectations. This comes on the same day the UK had its rate of GDP growth upgraded from 0.6% to 0.7% for the three months leading to the end of January. Taken together, the UK economy has put on a real show of resilience since the vote to leave the EU and continues to surprise markets to the upside. Today, the FTSE 100 was up around 0.4% at the time of writing, whilst most other markets were less chipper. Sterling saw strength today, up against other currencies such as the Euro and the Japanese Yen, whilst it remained flat against the US dollar which remains the dominant currency. UK bonds continued to sell, sending yields higher.