Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter