Bringing you live news and features since 2006 

Azad Zangana, European Economist, Schroders

UK growth rebounds in Q2

RELATED TOPICS​

Schroders Senior European Economist, Azad Zangana (pictured), comments on the preliminary UK GDP figures…

The preliminary estimate for GDP showed the UK economy rebounded in the second quarter, following a disappointing start to the year. Real GDP growth picked up to 0.7 per cent in the three months to June, an improvement compared to the 0.4 per cent growth recorded for the previous quarter.
 
The pickup in activity was driven by an improvement in industrial production, where growth in the mining and quarrying industry picked up sharply. Manufacturing which is a sub-sector of industrial production, contracted over the quarter, highlighting the difficulties manufacturers are facing with the strength of sterling hitting export demand. The services sectors also improved, especially business services and finance. Otherwise, construction activity was flat during the period.
 
Overall, the latest GDP figures suggest that the economy is performing strongly and should continue to create more jobs, putting upward pressure on wages. We forecast the pace of growth to remain similar until the turn of the year, before austerity starts to slow activity. As for the Bank of England, with external concerns such as Greece subsiding, the Monetary Policy Committee will be seriously considering whether it is time to start raising interest rates.  We expect the Bank to hold fire until early next year, as inflation is currently too low. However, once the Bank starts to hike rates, we expect them to move at a faster pace than markets are currently pricing, which may put further upward pressure on sterling, and potentially have a negative impact on UK equities, given the importance of overseas earnings.  

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by