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.