British economy performing better than expected, figures show

The latest Office for National Statistics (ONS) figures on the British economy are better than many financial analysts predicted.

The hourly production of British workers has grown at its fastest rate since 2011, with a 0.9% increase in the output per hour in the third quarter of 2017.

The unemployment rate is 4.3%, which is the lowest rate since 1975, and the interest rates rise has increased the value of savings, although loan payments will be slightly more expensive.

Gross domestic product (GDP) went up 0.4% in the third quarter of 2017, with an annual rise of 1.5%.

There is political uncertainty about Brexit, but this has not yet significantly affected the UK economy.

With the growth in the economy higher than many financial experts predicted, Darren Morgan of the Office of National Statistics said:

“Services, led by increases in IT, motor trades and retail, continued to drive GDP growth, Manufacturing also boosted the economy with an improved performance after a weak second quarter.”

Though the economy is doing better, many employees have not benefited yet. The average wage rise is 2.2%, which is below the October 2017 3% inflation rate. This means that wages for most workers have shrunk in real terms.

Whether your finances increased or decreased in 2017, it makes sense to formulate a personal asset management plan that maximises savings and investments to help your wealth grow at more than the 3% inflation rate, remembering that your wealth needs protecting in case of a future economic downturn.

Investments – The value of units can fall as well as rise, and you may not get back all your original investment.

Sources used:

Posted by Alan
28th November 2017


All blogs and news on Endeavour Financial Planning are for information purposes only and are not intended to provide advice. Please seek the advice of a financial advisor before making any financial decisions.


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