U.K. Economic Growth Prospects
Two months ago, significant revisions to the U.K.’s national accounts by the Office for National Statistics upgraded Q2 2014 GDP growth, prompting analysts to claim that there was “less slack in the economy than previously thought.” Additionally, Q3 2014 GDP grew 3% year-over-year. However, the widely watched U.K. Economic Sentiment Indicator (UKESI) slipped in October to a seven-month low, slightly off a 26-year high. Should we disregard its recent weakening, with backward-looking GDP growth near an eight-year high?
ECRI’s latest update to the U.K. Long Leading Index (UKLLI) provides insight into the U.K.’s changing economic outlook, including whether or not the recent weakness in the sentiment indicator is cause for concern.