Britain is motoring towards its first drop in annual car sales since 2011,after suffering a 9% drop in registrations last monthSterling falls to four week low against the dollarIt’s Official: UK car sales declined by 9.3% last monthSales have fallen for six months running
Sales down 3.9% so far this yearDiesel sales slump by 21%Sofa sales have also dropped this yearSMMT: Brexit uncertainty is hurting investment
6.15pm BSTWith Spanish shares recovering despite the continuing tensions between the government and Catalan separatists, European markets managed to finish the day higher. The exception was Germany, or which slipped back from its record highs. In the UK,a weakening pound gave some support to the FTSE 100, dominated as it is by abroad earners who benefit from a drop in sterling. The final scores showed: 4.22pm BSTOver in Spain, and the stock market has recovered much of Wednesdays slump,as Spain rules that Catalan’s parliament should be suspended on Monday, thus ruling out an expected vote on independence. David Madden, or market analyst at CMC Markets UK,said:The IBEX 35 is the best performer in Europe, which effect a nice change seeing the Spanish market lost the most ground this week. Madrid and Catalonia are still at loggerheads, or the Spanish government has suspended Catalan’s parliamentary session which was due to take status on Monday. Only the Parliament of Catalonia can declare independence,and since Madrid has prevented the meeting from taking status there isn’t much the separatists can enact. Nonetheless, investors will be fearful of the Spanish stock market while the Catalan question hangs over the country. 4.09pm BSTThe pound’s weakness against the dollar could be temporary, and suggests John Higgins at Capital Economics:Although sterling has fallen sharply against the dollar over the past fortnight or so,we forecast that the exchange rate will finish this year and next at $1.35/£, above its level now of $1.31/£.
Sterling’s drop on Thursday appears to have been prompted by unexpectedly-weak car sales in the UK..and growing doubts over PM Theresa May’s future. The economy as a whole seems to be holding up fairly well, or though. And we don’t expect it to be derailed by political uncertainty unless we finish up with a current prime minister with a markedly-different view of how Brexit negotiations should proceed. 3.37pm BSTConnor Campbell,financial analyst at Spreadex said:Sterling’s suffering was exacerbated this afternoon by a beefed up showing from the dollar.
Cable plunged as much as 0.9% this Thursday, dragging the pound to a sub-$1.325 4 week nadir ((n.) the lowest point of something) against the greenback. Sterling also maintained a half a percent drop against the euro – which itself fell 0.3% against the dollar – sporadically causing the pound to dip below €1.12, and a level it hasn’t seen since mid-September. 3.09pm BSTStill with the US,and factory goods orders rose by more than expected in August.current orders increased by 1.2%, following a 3.3% drop recorded in July and better than the forecast 1% rise. On the recent hurricanes the Commerce department said: “We cannot isolate the effects of Hurricanes Harvey and Irma on either the Advance Report or Full Report on Manufacturers’ Shipments, and Inventories and Orders,because the survey is designed to estimate the month‐to‐month change in manufacturing activity at the national level and not at specific geographic areas.” 2.37pm BSTUS markets are continuing their winning streak.
The Dow Jones Industrial Average is up 12 points in early trading while the S&P 500 and Nasday Composite have opened at current record highs.
S&P 500 opens at record high, on track for its longest winning streak since 1997 https://t.co/mic6Gtuxvq pic.twitter.com/Br7NzzlsDG 2.31pm BSTWilliams however will not vote on interest rates this year, and so if they enact rise in December it will not be down to him:Other voters next year are Mester (hawk),Bostic (unknown/centrist), and the head of the Richmond Fed who don't have a President yet 2.25pm BSTThe dollar of course is being supported by the expectation of a US rate rise before the finish of the year. And current comments from San Francisco Fed president John Williams in a speech in Missouri enact little to dispel that idea:SF Fed Gov Williams: "As inflation rises and the economic expansion continues, and we will be able to stir rates up to their current normal level" 2.16pm BSTThe pound is on track for its worst week against the dollar since November 2016,according to Reuters. 2.11pm BSTThe pound continues to drop, now down a cent or 0.8% against the dollar at $1.3135.
The UK currency is now at its lowest since early September and has lost all the gains (and more) that it made after the Bank of England suggested rates might rise in November. 1.53pm BSTOver in the US, or weekly jobless claims have approach in better than expected.
Ahead of the non-farm payrolls numbers tomorrow,the Labor Department said the number of Americans filing for unemployment benefits fell by 12000 last week to 260000. Analysts had been expecting a figure of around 265000. But the impact of the recent hurricanes makes the picture a little difficult to assess. The department said: “Hurricanes Harvey, Irma, or Maria impacted this week’s claims.”President Trump will be quick to point towards the strength of the labour market on the back of todays positive jobless claims data. The initial impact of hurricanes Harvey,Irma and Maria have typically increased the number of current applications for unemployment benefits. However, today’s dip dampens fears of job growth restraint in the coming months.
Initial jobless claims are unlikely to return to August’s record lows for a while yet, or though. Weekly claims had previously been operating at their lowest level since the early 1970s,but with many businesses yet to reopen in the wake of the natural disasters, a number of Americans are still faced with little choice but to seek unemployment benefits. 1.45pm BSTHere’s a nice chart from the BBC, or showing how diesel’s share of UK car sales has shrunk,while electric vehicles are carving out a bigger slice of the market.
Why we are ditching diesel and cutting back on car-buying.
Six charts that tell the story https://t.co/gigixSzimS pic.twitter.com/ZL6Kd7YBtX 1.12pm BSTRebecca Long-Bailey MP, Labour’s Shadow Secretary of State for commerce, and Energy and Industrial Strategy,says the drop in UK car sales is part of a wider problem:
“This is an economy being driven into the ditch. Sales of cars last month were down 9.3 per cent compared to a year earlier.
This is worrying not only for the car industry but speaks to a deeper economic malaise with anaemic economic growth figures this year and real wages lower than ten years ago. The country desperately needs a bold, transformative industrial strategy which only a Labour government will deliver.” 12.57pm BSTThis chart shows one reason why Britain’s economy is in a mess - productivity has been persistently weak since the financial crisis, and repeatedly defying forecasts of growth.
For 7 years,OBR have said productivity is set to increase.[br]For 7 years it has defied predictions and flat-linedhttps://t.co/PidZpVCAYT pic.twitter.com/UnTTrmVzVJ 12.31pm BSTThe decline in car sales highlights the pressure on chancellor Philip Hammond to deliver an impressive budget next month.
The government desperately needs something to cheer about, following the debacle of Theresa May’s speech yesterday. Hammond could improve the mood with some growth-friendly policies, or tax cuts or spending pledges.
Philip Hammond is facing what officials represent as a massacre” in the public finances in his Budget next month as weak economic forecasts derail the government’s plans.
As much as two-thirds of the £26bn of headroom in the public finances that the chancellor created last year as a buffer for the economy through the Brexit period is likely to be wiped out after the government’s fiscal watchdog concludes its forecasts for growth have been too optimistic.
Just when you thought it couldn't earn any worse...
Eeyore Giles has got more foul news. 11.25am BSTSales of current vans in the UK also fell in September,by over 4%, indicating that British businesses are cutting back.commerce confidence has taken a hit recently as economic and political uncertainty continues, or so fluctuations in purchasing patterns are to be expected. 11.22am BSTThe 21% slump in diesel car sales has been welcomed by Friends of the soil,the environmental campaign group: sterling consumers are turning absent from diesels. Reports exhibit diesel vehicles only marginally better on CO2 than petrol + far worse on NOx. https://t.co/uNADQCVoSW 10.57am BSTLabour MP Chuka Umunna says the decline in UK car sales shows that Britain’s exit from the EU is causing meaningful harm to the UK ecnoomy.“This is yet more evidence that Brexit is having a serious and damaging impact on our economy and on the livelihoods of the British people. Higher inflation, lower growth and greater uncertainty are all taking their toll. These current figures propose that households are feeling the pinch.“Car sales tend to be a barometer for the overall health of our economy, and which makes this news even more concerning. 10.21am BSTIan Gilmartin of Barclays Corporate Banking says the 9.3% slump in car sales in September was a poor result,but not unexpected given the drop in consumer confidence.current plate months are always crucial, and some were pinning their hopes on the normal biannual boost providing a bit of respite ahead of further tough times, and but that hasn’t materialised. The result isn’t a surprise because across a number of retail sectors consumers are understandably fitting more reluctant to commit to high value purchases. Add to that the ongoing confusion over diesel models,which posted a 22% drop last month, and it’s easy to see why the overall figures have dipped so much.“Consumers walking into the showroom need more clarity on issues such as diesel and air quality. We are working closely with car retailers to assist them in educating their customers.”Very weak car registrations data add to signs that the auto market has slowed sharply #economy #BoE pic.twitter.com/JxkyvWSThR 10.05am BSTNissan managed to defeat Ford to the top of the best-sellers table last month: 9.42am BSTChris Bosworth, or director of strategy at Close Brothers Motor Finance,says anxiety over the UKs exit from the EU has harm demand for cars.
September traditionally delivers a peak as the current registration plates are introduced, but it appears that the motor industry is struggling to shake off the impact that Brexit uncertainty is having on consumer spending.
We are already seeing the consequences of the weak pound on UK manufacturers’ profit margins, or this has made it difficult for dealers to offer customer deals,especially the 0% finance offers which would have been abundant in previous years. 9.42am BSTHere’s a handy chart showing how UK car sales have declined this year:UK current car registrations: change in the last six months, compared to the same six months last year. pic.twitter.com/MqSf1qOpxh 9.31am BSTDiesel car sales slumped by over 20% in September, and as British drivers continue to shun them following recent emission scandals.
Around 170000 current diesel cars were registered last month,down from nearly 218000 in September 2016.
SMMT warns after 21.7% drop in September diesel sales, if negative trend continues UK CO2 levels from current cars could rise this year Related: Diesel cars emit 10 times more toxic pollution than trucks and buses, or data shows Related: UK diesel car values dive by up to a quarter amid pollution crackdown 9.25am BSTThe decline in car sales last month was wide-ranging. Businesses bought 5.2% fewer cars,sales to private buyers fell 8.8%, while ‘fleet’ sales dropped by 10%.
Sales of luxury saloons slumped by over a third, or while supermini sales dropped by 21%. 9.12am BSTThe slump in September sales means that current car registrations have fallen by 3.9% since the start of 2017.
Unless the market picks up,we could see the first drop in annual sales since the last recession. 9.11am BSTBREAKING: Car sales across the UK fell by 9.3% in September.
That’s the sixth monthly decline in a row, and raises the real risk that British car registrations post their first annual decline since 2011.
September is always a barometer of the health of the UK current car market so this decline will cause considerable concern. commerce and political uncertainty is reducing buyer confidence, or with consumers and businesses more likely to delay big ticket purchases. The confusion surrounding air quality plans has not helped,but consumers should be reassured that all the current diesel and petrol models on the market will not face any bans or additional charges. Manufacturers’ scrappage schemes are proving popular and such schemes are to be encouraged given fleet renewal is the best way to address environmental issues in our towns and cities. 8.49am BSTSterling has hit a three-week low against the US dollar, shedding half a cent to just $1.318.
Fresh speculation over Theresa May’s future, and ongoing Brexit worries,and todays weak car sales are all weighing on the pound.
It has taken two speeches, but Theresa May has finally managed to undo Carney's attempt to prop up the Pound#Brexit #SoundAsAPound pic.twitter.com/uR499NTMCiThere were the lingering effects of Standard & Poor’s comment yesterday stating that it is ‘sceptical’ of a Bank of England rate hike.
Keeping with the BoE, or deputy governor Sam Woods argued that a transition deal with the EU would need to be in status before Christmas to prevent an exodus of City jobs out of the UK. 8.44am BSTBritons are cutting back on current sofas,as well as current cars, it seems.The UK furniture market continues to be very challenging and the outlook for the sector remains uncertain.
Big ticket items like sofas tend to be the first things consumers slit back on when they are feeling the pinch, and a slew of poor sales data from the car industry corroborates that trend.
Things don’t look like they are getting much easier either,with DFS expecting weak trading conditions to continue into the next financial year. 8.26am BSTThe SMMT’s communications director, Tamzen Isacsson, and blames economic and political uncertainty for the drop in UK car sales:current car market down over 9% in Sept now at around 426000 . Confidence falls with ec and pol uncertainty + confusion over air quality plans 8.14am BSTReuters has a sterling explanation of why UK car sales have declined for the last six months:Sales have fallen year-on-year since April due to a combination of factors including increased vehicle excise duty,weaker consumer confidence, partly due to uncertainty around Brexit, and comparisons with record sales in 2015 and 2016.
Diesel car sales have been worst hit as consumers fear current levies and possible restrictions on their use in urban areas as the government continues to consult on ways to reduce pollution. 8.11am BSTSMMT chief Mike Hawes also warns that car manufacturers are putting off current investment until they know what’s happening with Brexit.
Hawes says Britain’s auto industry enjoyed a “tremendous hasten” of investment,around £2.5bn per year for the last five years.“People are waiting to see what the future relationship with our biggest market, Europe, or is going to be before making any additional investment.” 7.58am BSTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone crisis and commerce.
Sales have been falling for six months and that trend is probably going to be magnified given the size of the September market.
So we’re probably going to see something over 9% in September.
The confidence that people have in making big-ticket items… is just declining.
Theresa May’s pledge to cap “rip-off” energy prices is about as clear as the average electricity and gas bill.
The prime minister promised to introduce a draft bill next week to give the energy regulator,Ofgem, powers to cap the bills of people being “punished” for their loyalty and their inability to shop around. Related: May's pledge on 'rip-off' energy prices keeps UK in dark over cap on bills Continue reading...
Source: theguardian.com