INFLATION OUTSTRIPS WAGES GROWTH
The services sector, making up about 77 percent of the economy, is the usual driver of growth, particularly in its consumer-facing sectors.
Wage growth at an annual increase of 2.2 percent is healthy but it is outstripped by inflation, currently at 3 percent, and means that consumers are just not spending as freely as they were.
This spike in inflation was fuelled in the main part by a Brexit-related adjustment in sterling's exchange rate in the immediate aftermath of the referendum vote in June 2016 which saw the pound fall from 1.48 U.S. dollars to 1.22 U.S. dollars.
That inflation spike is passing through the economy and many commentators believe it is very close to a peak, with forecasts of a downward inflationary trend in 2018.
In the meantime, with service sector growth subdued, it is the healthy growth in manufacturing which is keeping economic growth moving.
"Given the manufacturing sector accounts for only about 10 percent of the economy it would need to expand by about eight times as fast as the services sector to have the same impact on GDP growth so while the strength is encouraging it clearly can't drive solid economic growth on its own," said Gregory.
"Its unlikely to fully offset weakness in the services sector but it does seem well placed to continue to provide valuable support in the meantime," she added.
GLOBAL GROWTH TO BE A CONTINUING STIMULUS
【国际英语资讯:Interview: Manufacturing to provide main impetus in British economic growth】相关文章:
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