Analysts at RBS suggest that concerns are rising about the performance of the UK economy in Q2 as the trade deficit widened (again) in the three months to April by £1.9bn, to £9.7bn.
Key Quotes
“Construction output saw its sixth consecutive decline in April, falling by 3.4%. That’s the sharpest fall since 2012. Almost all sectors are in the red.”
“The UK added 150k workers and unemployment dropped by c.40k during Feb to April, compared to the previous three months. Lest we forget, the unchanged unemployment rate of 4.2% remains the lowest since mid-1970s.”
“Good news for the retail sector has been in very short supply this year as barely a week has gone by without a major high street name being in trouble. But May’s spending numbers suggest that might be changing.”
“It’s unlikely the UK remain isolated from global price pressures for long.”
“For a nation obsessed with housing, the property market is giving us very little by way of excitement. Recent trends continue, with annual growth in prices moderating, reaching 3.9% in April on official measures, down from 4.2% in March.”
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