UK's manufacturing PMI likely to confirm slowing growth

UK economic growth, while slowing, remains relatively robust, but fiscal consolidation will likely weigh on activity in an environment of surprisingly low inflation and the underpriced impending EU referendum.

"UK's manufacturing PMI is likely to show a further decline in September to 51.0, confirming the broader moderation in UK economic activity", says Barclays. 

While final Q2 GDP is expected to be confirmed at 2.6% y/y, growth is forecasted to fall to 2.0% y/y by year-end. 

"While the GBP has roughly kept pace with the USD this year, and it is expected to outperform the EUR due to a significant growth differential, headwinds may finally begin to take a toll on cable over the coming year", added Barclays.