The final reading of Q1 GDP confirmed the UK avoided slipping back into recession as growth was confirmed at 0.3% quarter-on-quarter. However, the detail of the report revealed real disposable incomes fell by 1.7% q-o-q, the largest quarterly fall since Q1 1987, this was offset by a significant drop in the household savings rate. While the data confirms the UK grew during the quarter, the recovery could run out of steam as falling incomes cannot be offset by lower savings indefinitely.
In the Eurozone, the German labour market continued to improve as unemployment fell by 12,000 in June, the first improvement after three monthly increases. The unemployment rate remained at the multi-year low of 6.8%. This release suggests conditions remain favourable and are likely to support consumer demand in the coming months.
Posted in Daily Market News on May 30 2014
After all the positive data coming out of the US we now see a little upset with the economy apparently growing a little less than anticipated as tax increases result in less consumer spending. Household expenditure, which accounts for 70% of the economy fell from a rate of 3.4% to...VIEW FULL ARTICLE
Posted in Daily Market News on Jun 27 2013 by alex