The
team at RTA Business Consultants
were pleased to see that economic growth in the UK is increasing at a higher
rate than previously expected. Great news all round for businesses, buyers and
sellers!
The
Office for National Statistics (ONS) released figures that indicate a 0.8%
increase in gross domestic product from July to September. This is a
significant increase on the figures from the previous quarter. Estimated annual
growth has increased from 1.5% to 1.9%, which suggests the long term economic
plan for the country is working.
However,
further reading of the ONS data reveals that the trade deficit has increased
sharply from £6.2bn to £20.7bn in the third. November also saw a significant
increase in public sector borrowing from £15.6bn to £16.5bn since last year.
These figures call into question whether or not the government’s current
recovery strategy is entirely sustainable.
On
the other hand, unemployment has fallen to 7.6%, which is the lowest it’s been
since 2009. This means there are now 30 million people in work. Similarly, the
housing market has begun to revive, which in turn improved the country’s
earnings on stamp duty.
Retail
spending has increased by 2% since last year thanks to an increase in shoe,
clothing and textile purchases. Interest rates are likely to stay at their 0.5%
record low however, since inflation is currently holding steady at 2.1%, just
0.1% higher that the Bank of England’s 2% target.
