Key highlights of the week ended December 24

Source: Dukascopy Bank SA
UK
The UK economy grew less strongly than previously estimated in both the second and third quarters, providing the Bank of England with more reason to remain cautious as it ponders when to raise interest rates from all-time low. The British economy expanded 0.4% in the three months through September, compared with a previous estimate of 0.5%, while annual growth was lowered by two percentage points to 2.1%. Furthermore, growth in the second quarter was revised down more sharply. GDP in the June quarter was downgraded to 0.5% from 0.7%. Weaker growth in the services sector, particularly in financial services, was the main reason behind the new, lower assessment of growth for the July-September period, according to the Office for National Statistics. 

US
The US economy grew at a slightly slower pace than initially expected in the third quarter. The nation's gross domestic product rose at a 2.0% seasonally adjusted annual rate in the three months through September, according to the Commerce Department, compared with initially estimated 2.1%. Economists, however, had expected a 1.9% expansion. The data suggests 2015 is on track to close out another year of steady growth, supported by an improving job market, robust home sales and pockets of wage increases.  Nevertheless, headwinds remain: despite low gasoline prices, consumer spending has been muted throughout the year. Weakness in overseas economies, a strong US Dollar and low oil prices have weighed on the manufacturing, mining and energy sectors, damping business investment and exports and resulting in thousands of layoffs.

Canada
Canada's economic growth was unexpectedly flat in October after shrinking a month earlier, due to drop in manufacturing, utilities and retail sales, Statistics Canada reported. Manufacturing production slid 0.3%. The declines offset a 0.8% increase in mining and oil and gas extraction in October. Economic output was little changed at an annualized C$1.64 trillion compared with September, when the economy shrank 0.5%, the most since March 2009, whereas economists had predicted a 0.2% gain in October. Economists expect growth to slow to 1.2% this year from 2.5% in 2014. The Canadian economy will have to wait for at least two years before growth returns to where it was before the plunge in oil prices. The nation's economy is seen growing 1.8% in 2016 and 2.1% in 2017. Investors are increasing bets Bank of Canada Governor Stephen Poloz will cut the 0.5% interest rate as oil prices hit new lows and growth in many other industries fails to take up the slack. 

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