Nancy Curtin, Chief Investment Officer of Close Brothers Asset Management comments on the upward revision of UK GDP growth…
Barely months after the threat of a triple dip, a series of good economic results for the UK means business and consumer confidence is climbing.
A London-led recovery has spread to the regions and has driven faster growth than expected, and like the US, the UK has shown its resilience in the face of slowing global trade.
A weaker currency, a fall in hourly wages and the rise of ‘zero-hours’ contracts have made Britain more competitive in the absence of an increase in productivity. But it’s the capital that’s really driving the economy with the housing market and labour market both performing far better than previously expected, which could portend well for stock market performance in the remainder of 2013.
However, the question remains whether the new Governor of the Bank of England, Mark Carney, will take this opportunity to put his foot on the gas and increase QE to accelerate the UK’s progress along the road to recovery even further.