Commenting on Soft UK GDP Highlighting Manufacturing and Construction
- Dan Boardman-Weston, CIO at BRI Wealth Management
- 11.11.2021 10:00 am #wealthmanagement #construction
Commenting on soft UK GDP data which highlights the manufacturing and construction sectors, Dan Boardman-Weston, CIO at BRI Wealth Management, said: “UK GDP came in slightly soft for the third quarter of this year compared to analyst expectations and far weaker than the Q2 figures. The weakness compared to Q2 is less relevant given the country was rebounding after lockdown and so the figures were really quite strong then. The slight weakness this quarter can be seen in manufacturing and construction and was undoubtedly exacerbated by material and labour shortages. The overall picture is quite cautious given lingering uncertainties over a winter covid resurgence, high levels of inflation and supply chain disruption. It’s understandable that the Bank of England wishes to gather more evidence before raising rates to combat inflation. Raising rates in the face of a slowing economic activity could do real harm to the nascent yet fragile post covid economy.
