The UK economy is expected to grow stronger, with official data anticipated this week. After a series of stronger than expected statistics, economists and analysts expect the pace of growth to have increased to 0.5 per cent in the second quarter of the year. The National Institute of Economic and Social Research, which has predicted growth of 0.6 per cent in the second quarter, said the quarterly figure masked important differences between months.
Research fellow at Niesr, Jack Meaning said their monthly estimates suggested there was a large expansion in gross domestic product in April, but stagnation in May. "The estimate for June is one of an intensifying contraction across the board, but this is not enough to offset the very strong April numbers," he said. An accountancy firm EY reported that profit warnings by UK listed companies have hit their highest level in any second quarter since 2008. Head of the company's UK restructuring, Alan Hudson said, "Many UK companies still face sluggish, disrupted and competitive markets, with Brexit adding further layers of challenge, but also opportunity."
Adam Marshall, acting director-general of the British Chambers of Commerce, said he wanted to wait and see what the official statistics say in the autumn. "I was with a company in Northern Ireland which said business was booming. Other companies are changing their hiring strategies. But let's not talk down the economy on the basis of early data."
