7th September 2017 - Business News

‘Struggling to re-accelerate’: Economists respond to UK business surveys

Not terrible, but not that encouraging either. That’s the consensus opinion among economists after the latest round of PMI surveys on the UK economy, with a disappointing slowdown in the key services sector offsetting buoyant confidence among manufacturers. Paul Hollingsworth at Capital Economics said it looks like the “economy is struggling to re-accelerate in the third quarter after a disappointing first half of the year”, but believed there are enough positive signs to expect some improvement when official GDP figures are released: The big picture is that the average level of the all-sector PMI in Q3 so far – which weights together the manufacturing, services and construction surveys – is consistent on the basis of past form with quarterly GDP growth of about 0.4 per cent. Although note that the survey overstated the economy’s strength in Q2. Read More