UK | A stronger base, but growing headwinds
Revisions in Q2’s national accounts showed the economy responding more strongly to exiting lockdown than initially thought. At the same time, the stock of ‘excess’ savings held by households, while still sizeable, was revised down.
What you will learn:
- The appetite to save has stayed strong and demand for credit muted. While the recovery has supports, headwinds are building, resulting in the BoE pushing back the date at which it expects GDP to regain its pre-Covid level.
- The ONS’ initial estimate of GDP growth of 4.8% q/q in Q2 had pointed to a decent bounce back in activity as Covid restrictions were lifted over the spring and early summer.
- An upward revision in Q2’s national accounts, leaving growth at 5.5%, means the economy’s reopening is now estimated to have delivered even more impetus.
Tags:
Related Services
Post
UK: Supply constraints are probably less prominent in the south
The extent to which UK employers can respond to likely 2024 interest rate cuts with increased output, rather than rises in prices and wages, will partly reflect the extent of spare capacity. This will inevitably vary by region. Evidence on this is imperfect, but in terms of capital assets (including intangibles) and labour availability, southern regions appear to be in a stronger position than those in the UK's traditional industrial heartland.
Find Out MorePost
Global Private equity real estate fund maturities spur asset sales
We expect the significant increases in fund maturities, spurred by capital raised over the past decade, to exert upward pressure on the rate of asset disposals as the funds approach the end of their lifecycles.
Find Out More