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Economic Review – May 2019

Posted on 11 June, 2019

UK GROWTH BOOSTED BY STOCKPIILNG

The UK economy benefited from a sharp one-off boost to growth in the first quarter of the year as manufacturers stockpiled ahead of a Brexit that never came.

Data released by the Office for National Statistics (ONS) revealed that gross domestic product (GDP) rose by 0.5% during the first three months of 2019; this compares with a growth rate of 0.2% in the final quarter of last year. While this clearly represents a strong rebound in growth, the ONS cautioned that the rise was driven by stockpiling as manufacturers rushed to deliver orders before the original 29 March Brexit deadline……

CBI WARNING OVER NO-DEAL BREXIT

The CBI has warned potential Tory leadership candidates about the consequence of a no-deal Brexit, as the Prime Minister’s announcement of her imminent departure has effectively put the Brexit process on hold until a new leader is elected.

On 24 May, Theresa May announced that she would be stepping down as the Conservative party leader on 7 June. In an emotional statement, the Prime Minister said she had done her best to deliver Brexit and expressed her ‘deep regret’ about being unable to do so.

The Tory party is now expected to elect a new leader, and the country’s next Prime Minister, by the end of July. And the person who is ultimately elected will clearly have a huge impact on how the Brexit process proceeds and is eventually concluded.so……

WAGE GROWTH SHOWS SIGNS OF EASING

Although the latest set of employment statistics once again shows that the UK labour market remains in a relatively robust state of health, the data did suggest that the recent growth in wages may have stalled.

According to data from the Labour Force Survey, the unemployment rate fell to 3.8% in the January to March period. This was the lowest reported figure since the three months from November 1974 to January 1975.

 

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