Market movers today
In the UK, the labour market report for March is due. We estimate the unemployment rate (3M average) will be unchanged at 4.7% while we estimate the annual growth rate in average weekly earnings (3M average) declined to 2.0% y/y from 2.3% y/y. The combination of higher inflation and slower wage growth means real wage growth is turning negative, implying less scope for private consumption growth. This is one of the reasons why we expect UK GDP growth to slow this year. Indeed, we have seen the first signs that this is actually happening. In recent months, retail sales have plunged the most since the financial crisis and although it is a weak indicator, it is a sign that private consumption growth has actually slowed.
Otherwise, there is very little happening on the data and macro front ahead of the Easter holiday.
Note. Due to the Easter holidays, the next publication of Danske Daily will be Tuesday 18 April.
To read the entire report Please click on the pdf File Below