Join our community of smart investors

Next week's economics: 20-24 Jan

A recovery in the eurozone and fall in political uncertainty could boost the UK economy, next week's figures might say
January 16, 2020

Has the reduction in political uncertainty led to an increase in business optimism and investment intentions? We’ll find out next week in the CBI’s survey of manufacturers.

Any upturn in these is, however, likely to be weak. This is partly because Brexit uncertainty hasn’t disappeared: post-2020 trading rules with the EU are yet to be agreed. But it’s also because there are still many obstacles to increased capital spending.

Friday’s news will reveal one of these. Flash purchasing managers’ surveys are likely to show that demand is still weak, with both manufacturing and services activity flat or falling. Why should companies invest if existing capacity is sufficient to meet demand?

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in