The British Chambers of Commerce UK and global economic review for June is based on May 2015 data releases.
This month’s headlines:
- UK GDP growth unrevised in Q1, weighed down by a widening trade deficit
- UK slips into deflation, but a prolonged period of negative inflation remains very unlikely
- Eurozone and Japan outlook still weak, despite growing faster than the UK in Q1
UK GDP growth was unrevised at 0.3%. In annual terms the UK economy grew by 2.4% and the economic output is currently 4% above it’s pre-recession peak in Q1 2008.
Inflation turned negative for the first time since 1960. However it is expected that a prolonged period of deflation is unlikely and the main reason for the fall in inflation is a decline in oil prices.
Japan, the world’s third largest economy, grew by 0.6% in the first 3 months of 2015, which is double that of the previous quarter. Despite this improvement, the economic output is still 1.4% lower in annual terms and with trade and investment showing little signs of growth, the picture remains weak.
The full review is attached.
