Strong first quarter performance unlikely to last for the rest of the year says Yael Selfin, Chief Economist at KPMG UK.
Strong first quarter performance unlikely to last for the rest of the year says Yael Selfin, Chief Economist at KPMG UK:
“A strong manufacturing performance in the first quarter coincides with survey evidence, which points at manufacturing continuing to outpace services in coming months.
“The rise in business investment in the first quarter, after four quarters of contraction, is particularly welcome. The worry is that a significant part of that was related to stockpiling activities ahead of an expected Brexit at the end of March, rather than a sign that businesses were finally moving on with their investment plans thanks to renewed confidence.
”Looking ahead, the unwinding of potential stockpiling effects in Q1 is likely to see a weaker Q2, leaving the UK economy only marginally stronger than expectations at the start of the year.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.