As British Pound Tumbles, U.K. Economy Continues to Climb: Chart

U.K. economic data continue to beat consensus estimates, as measured by Citigroup Inc.’s Economic Surprise Index, as the pound plunges. The purchasing managers index for manufacturing climbed to a two-year high in September, with PMIs for services and construction both beating estimates, boosting chances the economy avoided a post-Brexit recession in the third quarter. “Everyone wants a weaker currency,” says Tsutomu Soma, general manager of the fixed-income department at SBI Securities Co. in Tokyo, after sterling tumbled again Friday. “The weaker pound is supporting U.K. exports and is actually not a bad thing for the economy, especially when inflation pressure is muted.”

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