7 May 2015
UK growth story to remain intact irrespective of the election outcome – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, notes that UK business activity remains strong despite the election uncertainty, suggesting 1Q15 weakness will not be repeated irrespective of the election outcome.
Key Quotes
“The April reading of the service sector purchasing managers’ index surprisingly rose to 59.5 from 58.9 yesterday. This was the strongest reading since August last year and suggests that the UK economy remains in good shape with a high probability of 2Q GDP bouncing back after 1Q15 weakness.”
“This means that despite fairly large falls in the manufacturing and construction surveys the overall composite index only dipped modestly to 58.4 from 58.7. The survey compiler suggests that this is historically consistent with GDP growth of 0.8% QoQ versus the 0.3% rate recorded in 1Q15.”
“The survey suggests that businesses aren’t being too distracted by the election with business expectations falling only modestly from a ten-month high. Employment also continues to rise according to the report.”
“As such, it offers support to the view that the UK growth story will not be significantly impacted irrespective of the outcome of today’s General Election.”
Key Quotes
“The April reading of the service sector purchasing managers’ index surprisingly rose to 59.5 from 58.9 yesterday. This was the strongest reading since August last year and suggests that the UK economy remains in good shape with a high probability of 2Q GDP bouncing back after 1Q15 weakness.”
“This means that despite fairly large falls in the manufacturing and construction surveys the overall composite index only dipped modestly to 58.4 from 58.7. The survey compiler suggests that this is historically consistent with GDP growth of 0.8% QoQ versus the 0.3% rate recorded in 1Q15.”
“The survey suggests that businesses aren’t being too distracted by the election with business expectations falling only modestly from a ten-month high. Employment also continues to rise according to the report.”
“As such, it offers support to the view that the UK growth story will not be significantly impacted irrespective of the outcome of today’s General Election.”