Yael Selfin, Chief Economist at KPMG UK, comments on GDP data.
“Weak May figures confirm Brexit-related uncertainty keeps its hold on the economy” says Yael Selfin, Chief Economist at KPMG UK:
“The deteriorating picture across the UK’s service industries is of particular concern. Services provide us with a better indication of the economy’s direction at this juncture, because they were less affected by stockpiling movements earlier in the year. The current statistics point to the UK economy grinding to a halt in Q2.
”Financial services output has now been contracting for 15 consecutive months, with Brexit likely to inflict permanent damage on the sector’s growth prospects. Weakness in retail and wholesale trade confirms recent surveys’ prognosis that households are rethinking their spending plans.
“The small rebound in manufacturing and construction in May is insufficient to compensate for the weaker trend in services, and we expect Q2 overall to see almost no growth from the previous quarter.”
© 2021 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.