Apparently, the UK construction sector is slowly rising like a phoenix from the ashes as the newest findings showed that the segment finally recorded modest growth in May. Without a doubt, good news was brought as house building activity significantly strengthened.
A ray of hope emerged as the British Chambers of Commerce upgraded its UK growth forecast for the ongoing year, 2014 and 2015. But also the good news is that consumer confidence substantially climbed in May, according to a separate survey.
Outgoing BoE Governor Mervyn King is expected to dispel some clouds over the UK economy as he is due to present his final forecast. Analysts are strongly convinced that Mr. King will indeed share news indicating that there are signs of a blossoming recovery which is so highly anticipated. Certainly, a delicate taste of optimism would be a beautiful envoy of his service at the Bank of England. Truth be told, Mark Carney, who is going to take the helm from Mervyn King, will have anyway a hard nut to crack as the UK economy is still far from being in the perfect shape.
George Osborne, the Chancellor, is once again under the IMF scanner, as officials of institution will arrive to review UK economic growth. It is expected that George Osborne will defend his policies.
As per the latest Ernst & Young (E&Y) Item Club report the “Bank Lending of loans,” UK business is going to see an upward swing by the end of 2013. If it does transpire that banks increase loan lending to UK business, it will be for the first time since the 2008 financial crisis which catapulted the markets and economy in turmoil.
Newest figures on UK retail sales are certainly unsatisfactory. The unprecedented chilly weather in March had a negative impact on retail sales as it significantly discouraged British customers to go shopping. Thus the ONS survey also added to disturbing signs about the UK economy.
The British Chamber of Commerce (BCC) has informed that there is a high probability that the wraith of a triple dip recession was averted owing to strong exports in the first three months of 2013. However, it was underlined that any recovery would be probably slow and modest.
On the 5th of February, the survey by the British Retail Consortium indicated that the UK retail sales increased in February at the fastest rate in about three years. The latest figures suggested that consumer confidence was boosted as UK customers went out to buy clothes, home furnishings and electronics goods.
While the UK economy, including the high street, is still not in the best shape, the country might glory in the title of the world’s most sought-after destination for foreign shoppers looking to splash out their hard-earned money. A study by VisitBritain indicates that the UK has still its magic that lures overseas shoppers to come and spend cash in British shops.
According to data released by the Office for National Statistics on the 7th of February, UK industrial output increased in December more than initially expected. A 1.1 percent increase in British industrial production poses a hope that the UK economy will avoid entering a triple-dip recession. Data showed that UK manufacturing production in December reached the highest level since July 2012 as it was mainly driven by equipment and chemical products segments.
The troubled UK construction sector contracted again in January, according to the newest figures. However, construction companies showed a little bit more confidence as they employed new workers for the first time in four months. Analysts underline that the slowdown in the UK construction activity might raise fears that economic growth will be weighed down in 2013. Among main causes of the recorded slowdown in the UK construction activity were harsh weather conditions and weak demand.
Latest data showed a surprising drop in activity in the UK services sector. The visible decline in the services sector in December is the first decrease in about two years. The fall raises fears that the UK economy might enter triple-dip recession.
The U.K. and Chancellor George Osborne were certainly unpleasantly surprised by official data released on the 21st of December as the figures showed that the UK economy grew less in the third quarter than previously estimated. A survey conducted by the Office for National Statistics (ONS) indicated that the U.K. borrowing also increased in November. In addition, it is likely that the U.K. economy will decrease in the final quarter of the year.
The Office for National Statistics released its data on the UK construction sector showing that it grew as much as 8.3 percent in October, compared to September. Certainly these results have eased fears that the UK economy was heading to a “triple dip” recession.
On the 3rd of December, Markit Economics and the Charter Institute of Purchasing and Supply released its data on the UK PMI showing that the British manufacturing activity expanded at a faster rate than initially estimated in the month of November
The United Kingdom probably has come out of recession, which is the longest double-dip since the 1950s, between July and September. Official figures showing the end of recession are to be released on the 25th of September. Yet analysts are not so optimistic, saying that the health of the UK economy is still fragile.
George Osborne, the Chancellor of the Exchequer, is expected according to the reports released on Wednesday to announce his upcoming plans to stimulate the economy of UK that has been hit badly by recession.