Daily Economic Outlook: 26th October, 2015

The BBA measure of U.K. mortgage approvals, which covers around two-thirds of the market, is expected to show that the housing market recovery remains steady. The more comprehensive, and more closely watched, BoE figures are released on Thursday.  Meanwhile, the CBI Industrial Trends release for October should provide  further evidence that domestic  manufacturers are continuing to contend with weak overseas demand and the strength of sterling, states Lloyds Bank. 

Ahead of the FOMC meeting and the release of U.S. Q3 GDP figures, which take place on Wednesday and Thursday respectively, this afternoon's September figures for U.S. new home sales are  set to confirm that the housing market remains solid.

Last week saw the ECB acknowledge that the intensification of downside risks to euro area growth and inflation over recent weeks had increased the likelihood of a further bout of monetary stimulus before the end of the year. Consequently, this morning's German IFO  business survey for October is set to receive even more scrutiny than usual for signs about the extent of euro area robustness to the slowdown in emerging market activity.

The headline business climate index strengthened during Q3 but is expected to fall from 108.5 last month to 107.9 in today's print, partly on the back of concerns around the emissions scandal engulfing the German motor industry, argues Lloyds Bank.