"After three consecutive one-point falls in the Index, January saw a dramatic return to the rapid improvement seen last summer. All five of the individual elements that make up the index saw substantial gains this month."
- Nick Moon, managing director of social research at GfK
Another portion of positive data from the U.K., and it seems we need to get used to it already, as British economy is only expected to gain momentum in the coming months, bolstering the case of the upcoming interest rate hike.
A survey conducted by GfK NOP Ltd. showed a gauge of consumers sentiment jumped 6 points, reaching minus 7, the highest since September 2007. The majority of analysts, however, expected a reading of minus 12. The index is perfectly reflects the situation in general, as after the U.K. economy emerged from recession in the middle of 2013, a gauge of consumer morale started picking up steadily and since June has rose 14 points. What is more important is the fact all of the five sub indices improved over the corresponding period, solidifying the view the recovery is broaden-based. Earlier this month a report showed the economy posted its strongest growth since 2007 last year, supported by a boom in the housing market, capping the improvement from a slump that started with the run on Northern Rock– the first on a British bank for 140 years.
This week the Pound is expected to be highly volatile, taking into account releases of manufacturing, construction and services PMI, as well as central bank's meeting.
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