Corporate banking may celebrate 'unsurprising' GDP

Corporate banking groups may be pleased with the gross domestic product (GDP) figures for quarter three, which one expert describes as 'unsurprising'.

Michael Baxter, editor of InvestmentandBusinessNews.co.uk, suggests data from sources like the Purchasing Managers Index implied growth would be better than predicted.

And corporate banking groups may therefore find earnings rise going into 2011, as improved confidence in the economic recovery could spur commercial activity and raise demand for financial services.

Reuters reports the worst forecast put GDP for the three months to September 30th as low as -0.2, with a median estimate of 0.4 per cent growth.

Yesterday (October 26th), Standard & Poor's upgraded the UK's outlook from negative to stable and reaffirmed the nation's AAA/A-1+ credit rating, a boost that may have significant positive implications for corporate banking groups.

GDP in quarter two was higher at 1.2 per cent, but the Office for National Statistics reported poor weather at the start of the year may have skewed this result, claiming underlying growth in the second and third quarters was broadly similar.  ADNFCR-2318-ID-800160343-ADNFCR