UK Economic Forecast
September 28, 2021After the economy rebounded healthily in Q2, momentum appears to have slowed in Q3, despite the removal of virtually all Covid-19 restrictions from July. GDP growth eased to a six-month low in July amid flatlining output in the services sector, while retail sales volumes fell in July and August in a sign of weaker consumer spending amid slumping sentiment. Moreover, PMI readings for both the manufacturing and services sectors continued their downward trend through Q3, each hitting seven-month lows in September as a result of self-isolation rules, spiking energy prices, global supply chain tensions and the impact of Brexit on the stock of EU workers. More positively, however, the labor market has continued to strengthen, with August seeing a solid increase in employment and record job vacancies.
United Kingdom Economic GrowthThe economy will rebound strongly this year, before growth moderates somewhat in 2022. A sharp decrease in public spending growth will drive the slowdown, offsetting a pickup in consumer and capital spending. New Covid-19 variants, supply constraints, tense relations with the EU and disruption as the UK adapts to its new trade agreement with the bloc pose downside risks. FocusEconomics panelists expect the economy to expand 6.6% in 2021 and 5.4% in 2022, which is down 0.1 percentage points from last month’s forecast.
United Kingdom Economy Data
5 years of United Kingdom economic forecasts for more than 30 economic indicators.
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United Kingdom Facts
|Bond Yield||0.83||-3.04 %||Jan 01|
|Exchange Rate||1.33||-0.35 %||Jan 01|
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United Kingdom Economic News
October 13, 2021
Industrial output rose 0.8% month-on-month in seasonally-adjusted terms in August (July: +0.2% mom).
October 13, 2021
GDP increased 0.4% in month-on-month seasonally-adjusted terms in August, which contrasted July's 0.1% decrease.
October 1, 2021
According to the Nationwide Building Society, house prices in the United Kingdom rose 0.1% month-on-month in September, following August’s 2.0% rise.
September 24, 2021
Consumer confidence came in at minus 13.0 in September, down from August's minus 8.0.
September 23, 2021
The IHS Markit Composite Purchasing Managers’ Index (PMI) fell to 54.1 in September from August's final reading of 54.8, marking the weakest reading since February.