The latest British Chambers Monthly UK Economic review was published today. The key headlines were:
- UK economy grew by 0.7% in Q2, driven by a strong output from services and oil and gas
- Labour market conditions in the UK weaken and inflation falls back to zero
- Outlook for global growth weakens amid continued concern over China and Greece
The UK service sector accounts for three quarter’s of the UK’s economic output and it rose to 0.7%. However the UK manufacturing sector output fell by 0.3%. This UK-wide data was reflected in the results of the last Quarterly Economic Survey for Quarter 2. Although many of the key Norfolk manufacturing QES balances rose in Q2 2015. Both export sales and orders balances rose (sales by eight points to +29% and orders by 2 points to +18%).
Despite the overall UK oil and gas output being strong, it should also be noted that many in the oil and gas sector in Norfolk and Suffolk are finding the current economic conditions challenging, as the impact of the reduced price of oil is being felt.
In the three months to May UK employment fell. Again, our region bucked this trend, with continued decreases in those claiming Job Seekers Allowance (JSA).
With the outlook for Greece still looking uncertain and the Chinese stock prices plummeting, the outlook for global growth weakens.
