Mecklai: Outlook remains positive on UK
UK with a positive outlook: The economy seem to have caught on to a positive momentum even as the British pound gained against major currencies like the U.S dollar and Euro touching a high of 1.5700 levels in June and currently trading above 1.5600 levels due to the positive data releases in the U.K market, says Mecklai.
August 29, 2013 / 12:11 IST
Mecklai graph of the day: UK with a positive outlook
The United Kingdom outlook for the current year 2013 was upgraded by Confederation of British Industry due to an improvement seen in consumer confidence and the business sector. The ongoing condition of credit in the economy also saw a certain improvement. The economy seem to have caught on to a positive momentum even as the British pound gained against major currencies like the U.S dollar and Euro touching a high of 1.5700 levels in June and currently trading above 1.5600 levels due to the positive data releases in the U.K market.The GDP (gross domestic product) which is on a Q-O-Q basis showed an improvement from the starting of this year from 0.3 percent in March to 0.6 percent in June. The unemployment rate also showed a sizeable drop since the starting of the year from 7.83 percent in March to 7.80 percent in June showing the job scenario in the economy is improving slowly but gradually.The change has been evidently seen as the reins on the economy were given to the new Governor of BOE Mr. Mark Carney who kept the interest rate well under the record low levels to bring down the jobless rate to 7.0 percent.While the economy seems to be improving on a steady pace it still needs rebalancing through an increased business investment and trade to ensure a sustainable growth. On the whole Governor Carney seems to be in his heroic best trying to revive the once mighty Britain and make it the global powerhouse.The below graph represents the U.K. GDP on the (right y- axis) and the U.K unemployment (left y-axis).
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