Yael Selfin, Chief Economist at KPMG UK commented on GDP data today.
Yael Selfin, Chief Economist at KPMG UK, comments on today’s GDP data:
“Continued Brexit-related uncertainty and a weaker global economic backdrop saw the UK economy further decelerate in the fourth quarter of 2018. The outlook for the first quarter of 2019 is relatively bleak while uncertainty remains so high, with Q1 potentially lost.
“It is particularly worrying to see business investment contracting significantly again, as it will impact the UK’s longer term productive capacity as well as productivity performance, and points at a low vote of confidence from business in the UK’s future. The contraction in manufacturing, despite the relatively weak pound and while the UK economy is still enjoying the benefits of the EU trade framework is also a worry for what to come.
“As on many other occasions, the economy was bolstered by households who continued to spend, albeit more reluctantly, and by a pick-up in government spending, which will not be sustainable in the long run. We need to see a recovery in business confidence and investment to get the UK economy moving again.”
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