"UK Economic Outlook: Negative GDP and Falling Inflation

11 oct 2023

In September, businesses in England have reported a significant economic downturn. New orders have declined, employment has dropped, and input costs have fallen due to reduced demand. Customers and consumers have attributed this reduced demand to the rising cost of borrowing, driven by high-interest rates. Meanwhile, the private sector, both in industrial and service activities, has reported price increases, a resilient labor market, and a growing economy. Economists anticipate that Australia may avoid a recession. On the interest rate front, the RBA has announced that they expect further adjustments in the future if the economy fails to cool down.
We anticipate that tomorrow England will present negative GDP data, and we expect that inflation in the United Kingdom will fall this month due to a decrease in the demand for goods and services. Therefore, we forecast a decline in the pound against the Australian dollar.