British economy showing signs of recovery after slow start to 2017

According to a recent piece in the Telegraph: “Britain is bouncing back from an economic blip in the early months of 2017”, the service sector grew in April at its fastest pace since 2016. Manufacturing and construction has also seen a rise in 2017.

The employment index ishigh with factory and construction firms taking on more staff. Many service companies are also hiring new employees to expand their businesses to meet growing demand.

There is a fear that, because of inflation, rising prices could squeeze the finances of many households unless their disposable income also increases. Inflation will decrease if the pound becomes stronger. Many imported products are more expensive thanks to the current weak state of sterling.

The Eurozone economy is also healthy with Italy and Spain joining France and Germany in the growth of service and manufacturing sectors.

A Financial Times survey in January 2017 found that many professional economists are not reassured by the strong state of the economy. They fear that the process of leaving the UK will damage the economy, even if the Eurozone continues to grow.

To insure against a possible future decline in the economy, individuals can consult wealth management advisors to develop investment strategies that can protect and grow personal wealth. A decline in the British economy does not necessarily have to have a detrimental effect on individual wealth provided a sound personal wealth management plan is in place.

Sources:
http://www.telegraph.co.uk/business/2017/05/04/uk-economy-back-poor-start-2017/
https://fullfact.org/economy/brexit-uk-economy-growing-or-slowing/