Bank of England business briefing
I attended the Bank of England business briefing this morning which provides an overview on the economy for the last quarter. It was really useful and here is a few snippets from my notes:
* The UK economy grew 0.3% in the last quarter, the first rise after falling for six consequtive quarters.
* Consumer spending is on the increase. This could be due to stamp duty relief, car scrappage scheme, the change in vat and people taking advantage of the standard variable mortgage rate.
* Household savings ratio has risen slightly. This may mean more people are paying off their debt as well as being cautious – this is a good thing!
* Company liquidations have not been as high as in previous recessions – yeahh
Outlook:
Economic growth is bumping along and output is a little weaker than was expected back in November. Inflation is rising sharply in the short term but is likely to fall back below target. So in general, cautiously optimistic!
