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Economics and Real Estate Q1 2017

Q2 2017

Growth sustained despite never-ending political flux

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Economic Highlights

  • The final estimate of GDP for Q4 2016 confirmed quarterly growth at 0.7%, with an annual expansion of 1.8%. Business investment declined 0.9% in Q4, and in 2016 overall it fell 1.5% versus 2015.
  • Consumer price inflation (CPI) increased by 2.3% in the year to March; the highest rise since September 2013. Higher prices are mainly feeding through from imported goods (owing to sterling’s weakness). The Bank of England is not expected to raise rates in response to above-target inflation figures given tepid growth in wages.
  • The latest employment statistics for the three months to February 2017 show an increase in employment of 39,000 when compared against the three months to November 2016. Unemployment fell by 45,000 to 1.6 million, with the unemployment rate falling marginally to 4.7%.