Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, the Office for National Statistics reported that GDP increased by 0.2% in the second quarter, while the estimate for the first quarter was revised up to 0.3%. The Bank of England announced that net mortgage approvals for house purchases fell to their lowest level in six months. Halifax estimated that the number of first-time buyers will fall by more than 20% this year. Car production in the UK also fell by 9.7% in August.
In North America, the US Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures (PCE) index, fell to its lowest level in two years. Industrial activity in the US moderated in August, with the National Activity Index falling below zero, indicating slower economic activity. The US government avoided a federal shutdown with a last-minute agreement on short-term funding. US GDP grew in line with expectations, with quarter-on-quarter data showing growth of 2.1% on an annualized basis.
In Europe, Eurozone inflation is expected to fall to 4.3% in September, lower than the market expectation of 4.5%. German business morale fell marginally further in September, according to the German research institute IFO.
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