May 12, 2017    1 minute read

UK Economy Treading Cautiously

   May 12, 2017    1 minute read

UK Economy Treading Cautiously

Signs of a continued slowdown in the UK have emerged as the Bank of England revises its growth forecasts and industrial output slips.

Editor’s Remarks: Keeping interests rates constant at 0.25%, BoE nudged its GDP growth forecast for 2017 from 2% to 1.9%, but raised it by 0.1% for 2018 and 2019. It admitted it had been too optimistic about the first half of the year – with real wage growth coming in lower than expected, for example – but added that it expected the squeeze to ease later in the year before turning to improvement in 2018. Meanwhile, data showed month-on-month industrial production fell 0.5% in March, putting more pressure on April’s positive PMIs to ‘come true’ in output terms. The general picture is of an economy treading cautiously out of a temporary slowdown in Q1, but with much of the future riding on Brexit talks.

What to Watch: Mark Carney, Philip Hammond, UK Inflation, UK Growth, GBP/USD

Get articles like this straight to your inbox each morning with our Breakfast Briefing. Sign up by clicking here!

Log in with your details

or    

Forgot your details?

Create Account

Send this to a friend