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Returning to the PMIs, another sub-index pointed to falling business optimism about the year ahead.

It does seem that the UK economy is slowly picking up, but the RICS index and survey of business optimism point to potential trouble ahead.

A bigger worry may relate to politics, and the continued infighting within the government, which has led to falls in sterling. If this instability continues, we may see a much steeper fall in sterling, hitting UK households’ affordability in 2018.