The Brexit Deal: Johnson Draws Rebels from Both Sides of EU Divide but Still Lacks Majority

The Consumer Prices Index measure of inflation in the UK showed prices increased by 1.7% year-on-year in September, unchanged on the previous month but a shade below the market's expectation for a more robust reading of 1.9%, as a trend of steadily declining price pressures on the UK consumer extends.

The UK economy's dominant services sector - which accounts for over 80% of economic activity - shrank in September as an economic slowdown deepens.

Labour market data out of the UK on Tuesday came in on the disappointing side, with a fall in employment and a below-expectation rise in wages being reported.

UK construction firms of all stripes saw another tough month in September, according to the latest IHS Markit Construction PMI, which fell to its lowest level since April 2009 on Wednesday after activity fell at its second fastest pace for a decade last month. 

The UK economy contracted in August although fresh Office for National Statistics (ONS) revisions have revealed that growth in the prior month was faster than previously thought and the second-quarter downturn was also shallower than the initial announcement declared. 

UK manufacturers remained on the back foot in September but conditions in the industry became less challenging than in the prior month, according to the monthly IHS Markit Manufacturing PMI, amid signs that firms are again stockpiling finished products ahead of the latest Brexit deadline.