IS THE UK ECONOMY BEING REBALANCED BY FACTORIES? – The Telegraph has recently reported on the findings of manufacturing’s first quarter for 2017. The first quarter report revealed that the UK economy is showing signs of rebalancing. Both the dominant sector and manufacturing output grew by 0.3pc . This was a slowdown from 0.7pc in the last quarter of 2016. The warmer weather throughout the first quarter has led to lower demand for energy and attributed to the slowdown.
Scott Bowman from Capital Economics has said. “This sets the scene for more balanced GDP growth in 2017, after the services sector accounted for almost all of the economy’s expansion in 2016.” (The Telegraph)
Allie Renison, from IoD (Institute of Directors) has also commented on the first quarter. Claiming that “We shouldn’t be too pessimistic about today’s export figures…The growth in imports highlights that domestic demand and consumption is still going strong.” (The Telegraph)
Britain’s economy is showing signs of rebalancing as manufacturing output grew at the same pace as the dominant services sector in the first quarter of the year.
Both sectors grew by 0.3pc in the three-month period, matching the overall GDP expansion of 0.3pc, which represented a slowdown from 0.7pc in the previous quarter.
Some of the poor performance was caused by warm weather which forced down energy demand and so depressed output in that sector by 4.2pc in March, a slump which is not likely to be repeated.
If you would like to read more on this story, please visit https://goo.gl/SUa6Ut.
Read more job and industry news here