UK economy back to peak in July
THE BRITISH economy is forecast to grow back to a new peak level during the second quarter this year, according to two pieces of research released today.
Accountancy firm BDO and the British Chambers of Commerce (BCC) both say that the UK will finally push past 2008’s GDP levels in summer this year, after years of recession and limited growth.
The BCC says that growth this year will be stronger than they expected, with a 2.8 per cent boost forecast, and that the recovery milestone will be reached in the second quarter.
By the middle of the year, the BCC expects to see real wage growth, with inflation staying on target this year, and for the next two. The group also expect construction output to be particularly strong this year, with a four per cent increase forecast.
BDO specifically names July as the month in which the economy will outstrip its previous record size.
“The recovery has well and truly taken hold across all sectors, with manufacturing in particular driving strong job creation,” said BDO partner Peter Hemington.
The BDO business trends survey also suggests firms are expecting muted inflation, with a headline score of 97.1 for their inflation index. A score of 100 indicates the long term average level.