This month’s headlines:
- UK economic growth in Q2 unrevised, as the trade deficit narrows and investment rises.
- UK unemployment rises again, but earnings continue to outstrip inflation.
- US growth is revised up sharply, but China weighing heavily on the global outlook.
Based on August 2015 data releases, this month’s economic review showed that UK GDP growth in Q2 remain unrevised at 0.7%. In Q1 a 0.4% rise was recorded. In annual terms the UK economy grew by 2.6% in Q2. The UK’s trade deficit narrowed by £13.4 billion in Q1 2015 to £9.1 billion in Q2 2015.
Overall the UK job market weakened in the 3 months to July 2015. However, here in Norfolk the trend was somewhat different. In the same period, those seeking Job Seekers Allowance (JSA) in Norfolk continued to fall from 6,679 to 6,518. Strong real wage growth continued. Wit two thirds of UK GDP being driven by consumer spending, the rise in real earnings and therefore consumer’s spending powe will continue to support growth.
The economy is the Eurozone grew by 0.3% in Q2 2015. Although this was down slightly from Q1 growth of 0.4%. US growth was revised sharply upwards, as the second estimate of US GDP relvealed that the US economy grew at an annualised rate of 3.7% in Q2.
Despite cutting interest rates and devaluing their currency, the Chinese economy remains a major concern. China is the world’s second largest economy and accounts for a quarter of global GDP growth. This means that the uncertainty over China’s economic outlook is starting to weighon the overall global economy.
For full details of this month’s economic review click here.
