Evans Chamberlain Asset Management - British Economy Improves

TAIPEI CITY, Taiwan, August 23, 2018 (Newswire.com) - Evans Chamberlain Asset Management analysts report that the UK economy gained some momentum in the second quarter of 2018 after a harsh slowdown during the winter months but then lost speed again in June, emphasizing its poor performance as Brexit looms.

Gross domestic product increased 0.4 percent in the third quarter as predicted by economists at Evans Chamberlain Asset Management.

The economy’s yearly rate of growth increased slightly to 1.3 percent in the period from April to June, only marginally higher than the six-year low reported at the beginning of 2018.

Sterling took a knock recently when talks of a no-deal Brexit intensified and was not impacted by the recent economic picture which showed that growth was led by the usual services industry while companies opted out of increasing investment.

The UK’s economy was badly affected by Britain’s decision to exit the European Union in 2016, and Evans Chamberlain Asset Management analysts expect its growth to continue to grow at a weaker pace than its peers as the Brexit date in March 2019 draws near.

Evans Chamberlain Asset Management analysts say the UK economic improvement after the winter slowdown could be good for Bank of England policymakers who recently increased interest rates to their highest level since the financial crisis.

The UK’s government has not yet been able to reach an agreement on the terms of Britain’s exit from the European Union and has been forced to plan for a strong possibility of Britain leaving the bloc without a trade deal.

The Office of National Statistics stated the economic upturn in the second quarter had been fueled by better retail sales and a recovery in construction after unusually heavy snowfall earlier in the year.

Source: Evans Chamberlain Asset Management