Investment Clock insights

Rising services activity offsets manufacturing weakness


Ian Kernohan

26 July 2017

UK GDP grew at 0.3% quarter on quarter during the second quarter of the year. The rising activity in the services sector has offset weakness in manufacturing and construction.
These early estimates of GDP growth are of course subject to future revision, but will form an important part of the discussion at the next Monetary Policy Committee meeting in August. We expect the Bank of England to keep policy unchanged until we have greater clarity on what is happening to underlying inflationary pressures in the labour market.

UK GDP grew at 0.3% quarter on quarter during the second quarter of the year. The rising activity in the services sector has offset weakness in manufacturing and construction.

These early estimates of GDP growth are of course subject to future revision, but will form an important part of the discussion at the next Monetary Policy Committee meeting in August. We expect the Bank of England to keep policy unchanged until we have greater clarity on what is happening to underlying inflationary pressures in the labour market.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.