In Q2 of 2013, the GDP expanded 0.6 percent quarter-on-quarter and 1.4 percent year-on-year with the largest contribution coming from the service industries. |
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In June, the unemployment rate remined unchanged at 7.8 percent. In the same period, the number of unemployed persons has declined to 2.51 billion, down 4 thousand from the the previous period.
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In July, consumer confidence jumped to its highest level in more than three years. In the same period, retail sales grew 3 percent yoy, the highest rate since January of 2011, helped by increasing sales of food, alcohol and clothing. |
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In Q3, the CBI business confidence indicator rose to its highest level since Q2 of 2012. In June, industrial production rose 1.2 percent yoy, strongest growth since January of 2011. |
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Credit rating downgrades and QE policy led to pound depreciation against the dollar. Yet, weak sterling is not a concern for the Bank of England as it is likely to make exports cheaper and spur growth. |
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The benchmark interest rate is set at an all-time low of 0.5 percent since March of 2009 and the asset purchases programme is at a record high of £375 billion per month. In July inflation rate edged down to 2.8 percent which gives the BoE some leeway to provide extra stimulus for the economy. |