British Employment Figures Released
- Claimant Count Change higher than anticipated
- Unemployment Rate better
- Average Earnings Index 3M/Y
The British released employment figures early during the trading session on Tuesday which were a bit of a mixed bag. It’s very likely that a lot of traders will be paying more attention to Brexit and the negotiations as far as a trade agreement is concerned between the UK and the EU. This is one of many inputs the people will notice, and one that should probably be considered when it comes to trading the British pound and of course British equities.
One thing that is doing relatively well in the United Kingdom is employment figures. Employment is probably the most important part of an economy because it affects consumption and saving, as well as reinvestment in corporations via capital expenditure. It is the lifeblood of an economy and could have far-reaching effects when it comes to Great Britain.
While it doesn’t necessarily suggest that there will be an easier path higher when it comes to all things UK related, it does suggest that at least the worst is probably behind the UK. Longer-term investors are going to be looking at the United Kingdom as value going forward.
The British employment figures announcements
The Claimant Count Change came out at 28,800 as opposed to the 21,200 expected. However, the previous month was revised from 33,000 down to 26,400. This is a bit of a mixed bag because it more or less evens out over the last couple of months. It’s likely that the market will continue to look at this as “more of the same” when looking at the British economy.
The Unemployment Rate came out at 3.8%, better than the anticipated 3.9%. For what it’s worth, the previous month was not revised. Unemployment Rate can be a bit tricky as it will take into account those entering and exiting the workforce, and certain demographic issues from time to time. Ultimately, traders will look at it as a positive headline, but the Brexit situation will serve as a bit of an umbrella when looking at the British economy.
Going forward, the British economy seems to be forming some type of bottom. Results will only become more clear as the country moves further away from the election. It is quite often the most dramatic action that marks a top or bottom, and that certainly could be the case here. The doom and gloom does not seem to be coming to fruition in the UK, and therefore as it is one of the world’s most stable economies, it will attract inflow.