Investment in United Kingdom
United Kingdom - Investment
Economy contracts at sharpest pace since January 2021 in April, although underlying momentum is less downbeat
GDP declined 0.3% month-on-month in seasonally-adjusted terms in April (March: -0.1% mom). April's figure marked the sharpest drop since January 2021. The downturn reflected drops in manufacturing, construction and services. The services sector was weighed down by lower pandemic-related healthcare spending as free Covid-19 testing ended, while higher input prices and supply constraints hobbled manufacturing. In contrast, within the services sector, accommodation and food services sped up considerably as the impact of the pandemic dissipated, while retail sales rebounded from March’s contraction.
On a rolling quarterly basis, GDP grew 0.2% in February–April, which was below January–March’s 0.8% expansion and marked the worst result since the three months up to March 2021.
April’s figures put the economy on track for a contraction in GDP in quarterly terms in Q2. That said, the fall in pandemic-related health spending muddied the economic picture in April and downplayed the economy’s underlying strength.
On the latest reading, ING’s James Smith commented:
“April’s UK GDP figures were always going to look worse than reality. Free Covid-19 testing stopped the previous month and according to the ONS that meant there was a 70% fall in test and trace activity. Pandemic-related health spending shaved a full 0.5 percentage points off GDP growth in April. And if we strip that out, the headline 0.3% decline in monthly GDP should actually have been marginally into growth territory.”
FocusEconomics panelists expect the economy to expand 3.7% in 2022, which is down 0.1 percentage points from last month’s forecast, and 1.5% in 2023.
United Kingdom - Investment Data
|Investment (annual variation in %)||3.7||3.6||1.6||-0.2||0.6|
5 years of economic forecasts for more than 30 economic indicators.
United Kingdom Facts
|Bond Yield||0.83||-3.04 %||Jan 01|
|Exchange Rate||1.33||-0.35 %||Jan 01|
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June 24, 2022
Consumer confidence fell to minus 41.0 in June from May's minus 40.0.
June 23, 2022
The S&P Global/CIPS Flash Composite Purchasing Managers’ Index (PMI) was unchanged at May's 53.1 in June.
June 22, 2022
Consumer prices increased 0.65% from the previous month in May, which was below April's 2.51% increase.
June 16, 2022
According to the ONS, in February–April the unemployment rate registered 3.8%, up 0.1 percentage points from the previous rolling quarter but close to its pre-pandemic level, while job vacancies set a new record high in the three months to May.
June 16, 2022
On 16 June, the Bank of England (BoE) increased the bank rate from 1.00% to 1.25%, marking the fifth successive rate hike.