Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

UK GDP rises to post-crash high

UK GDP rises to post-crash high

The Office for National Statistics (ONS) has estimated that the economy grew by 1.9% last year.

In the fourth quarter of the year GDP rose by 0.7%, the ONS stated. This was underpinned by a 0.5% increase in output from the agricultural sector, 0.7% from production, and 0.8% from services. However, output decreased by 0.3% in construction.

The latest readings reveal that the economy is now 1.3% below its peak in the first quarter of 2008; from peak to trough in 2009, the economy shrank by 7.2%.

‘We have now seen four successive quarters of significant growth and the economy does seem to be improving more consistently. Today's estimate suggests over four fifths of the fall in GDP during the recession has been recovered, although it still remains 1.3 per cent below the pre-recession peak,’ commented Joe Grice, chief economic adviser at the ONS.

Nancy Curtin, chief investment officer at Close Brothers Asset Management, argued that the latest reading shows that the economic recovery 'is not a flash in the pan'.

She said: 'We are seeing renewed consumer spending, which should trigger a revival in investment spend - which is still a long way from where it needs to be. And combined with sustained low rates on the horizon as Carney moves away from using unemployment as the sole benchmark for tightening monetary policy, we are seeing a benign growth and liquidity outlook for investors.'

For Curtin, the news is most positive for consumer discretionary and industrial companies. 'We are laser focused on investing in those companies which are most leveraged to the pick-up in UK and global growth and best able to deliver this to the bottom line for us as investors,' she remarked.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter