UK economy sees growth slowdown

The Office for National Statistics has announced that the British economy grew by 0.3% at the start of 2017 compared to a 0.8% growth at the end of 2016.

Spending on the hospitality sector, including hotels and restaurants, has decreased by 5%, and the retail sector has also experienced decreased sales. Manufacturing performed better, however, with production up by 0.5%.

Suren Thiru, economic head at the British Chamber of Commerce, said:

“It is increasingly likely that the slowdown in the first quarter is the start of a sustained period of more sluggish growth. Inflation is expected to continue to rise, increasing the squeeze on consumer spending power and firm’s profit margins, pushing growth lower.”

Separate figures from the British Bankers’ Association show the number of new mortgage offers has decreased from 42,247 in February 2017 to 41,061 in March 2017, and pay rises at an average of 2.2% are slightly behind the inflation rate of 2.3%.

Some financial experts remain optimistic. For example, Lee Hopley of the manufacturing group EEF said:

“There are clearer signs that the consumer is wavering as inflationary pressures have picked up, but the production related sectors of the economy are forging ahead thanks to an improving global picture and the more competitive pound.”

The latest figures highlight the need for personal wealth management. Good investments can make sure that your personal assets are protected and grow above the rate of inflation. Financial planning can help make your finances resilient in a sluggish economy.

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

Source: http://www.bbc.co.uk/news/business-39743129