UK Economy – Recovery at stake

UK’s economy is stated to be the most expanding one amidst other industrialized nations but official figures demonstrate that growth might be hit by poor data.   Retail sales witnessed a slump, apostle by the mild weather prevailing, dissuading shoppers to invest in winter-buying. Nevertheless, there is hope that retail sales might rebound in October.   Economists on their part accuse the slow wage growth that is putting a halt over consumption.   These data provide a benchmark to the Bank of England (BoE) which is still resisting any shift in interest rates for the time being.   Elsewhere, industry data also slumped to almost 10%, the deepest decline noticed since July, last year.   Last year, industrial sustenance was the key factor that enabled the British economy to rise up and today, slumping data shows that the housing sector might be cooling off.   Factory export orders likewise weakened with British manufacturers taking a blow with the overall Europe’s go-slow spectrum.   Despite the upsurge of weak economic data, UK remains one of the ‘sturdiest’ economies compared to its allies.   Coming to the Eurozone, UK is still expecting a growth of 3% for the rest of this year but it might be difficult for it to stay overboard with the Eurozone trapped in the turmoil of recession.   Source: Reuters
Priscilla Camryn By: Priscilla Camryn
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