Weaker growth splits opinions down the middle
The shade of Brexit cloud moved from light to dark-grey this morning as an already pessimistic forecast from analysts was missed with first quarter growth printing at 0.3%.
With the country already split down the middle on the Brexit vote, slowing growth shouldn’t be a surprise, but this won’t cause pandemonium among economists. Whilst in the short term declining Retail Sales numbers are a concern, along with wages not increasing at the rate inflation is, it has to be noted that pre-Brexit figures were actually similar levels in 2016. If we consider the long road ahead of Brexit negotiations, it is a gloomy forecast, but these are the cards that have been dealt and it appears from recent polls, Theresa May is set to gain a majority vote come June 8th. Assuming this occurs, complications should (in theory) be minimal as Mrs May is surely the most qualified of the candidates.
UK GDP growth fell back to earth with a bang in the first quarter
Alex Lydall quoted in City AM