Is The UK's Recovery Slowing Down?
14th July 2014
Is the UK’s Recovery Slowing Down?
Figures released last week show the surprise slump in construction.
The Office for National Statistics said production in the sector fell 1.1% in May as private sector house building deteriorated. These figures will add to concerns that the financial situation in the UK is starting to wobble.
Analysts advised that overall economic growth may fall short of expectations in the second quarter of the year of the year, following a 0.8% increase in gross domestic products between January and March.
Construction output was still 3.5% higher than in May 2013 while manufacturing was up 3.7% year-on-year, but, signs that the pace of recovery is easing could persuade the Bank of England to leave interest rates at 0.5% for longer.
“We hear continued reports that the London market is slowing quickly and therefore policy makers need to be cautious about hiking interest rates too early in what looks to be a still fragile recovery” said Ed Bidwell, head of Building Warranties, Evolution Insurance.