Sitting on top of the world
On Friday, it was reported that the UK economy grew by 3.2% in the second quarter compared with the same period last year. This is slightly higher than the original estimate of 3.1% and means the economy is growing at its fastest pace since 2007.
It also confirms that the UK economy is now top of the global growth league, ahead of the US, Japan and all European states. Of the G7 countries, only Canada has yet to report growth for the second quarter, and when it does on August 29, it is likely to be around the 2% growth level, according to the influential EY Item Club.
The FTSE100 continued its climb again, after its recent dip, closing up 52 points at 6741.
Data released last Thursday showed that overall Eurozone growth had effectively stalled in the second quarter of 2014, with GDP there up by just 0.7%. France is stagnating, the German economy is weakening and Italy is back in recession.
In competitive terms, this all sounds good, but UK exporters need the Eurozone to perform better, and it means that the UK’s continuing economic recovery is going to have to be a domestic-led affair over the next 6 months or so. Continuing geopolitical tensions could also impact upon UK’s manufacturing sector, which could mean economic growth could become a little less balanced going forward.