The latest growth figures were spearheaded by the service sector, despite contraction in both production and construction industries. Last week, Prime Minister May’s ‘softer’ Brexit stance highlighted the need to protect the very sector that carries significant importance to the UK economy.
Anthony Kurukgy quoted in The Guardian
If Bank of England Governor Mark Carney was hoping for a surprise uplift in the latest GDP estimate this morning, he was dealt yet another blow. The latest reading, which came in line with market expectations (0.1%) reaffirms the UK Central Bank’s views that a combination of stagnated growth and ‘softer’ data will only keep the likelihood of UK interest rate hikes on hold.
It was only last week that ECB President Draghi said he would watch the economic data in the months ahead with ‘caution’ and following the release of the latest eurozone Inflation print, which missed expectations and recorded a 14-month low (1.2%), he may need to.
Anthony Kurukgy quoted in MarketWatch