• 759 days Will The ECB Continue To Hike Rates?
  • 759 days Forbes: Aramco Remains Largest Company In The Middle East
  • 761 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,161 days Could Crypto Overtake Traditional Investment?
  • 1,165 days Americans Still Quitting Jobs At Record Pace
  • 1,167 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,170 days Is The Dollar Too Strong?
  • 1,171 days Big Tech Disappoints Investors on Earnings Calls
  • 1,172 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,173 days China Is Quietly Trying To Distance Itself From Russia
  • 1,174 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,178 days Crypto Investors Won Big In 2021
  • 1,178 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,179 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,181 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,181 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,185 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,185 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,186 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,188 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Preliminary UK Q2 GDP Confirms Slowing Economy

Today's preliminary Q2 GDP report from the UK showed real growth slowing to 0.2% on the quarter and 1.6% on the year, the weakest in three years and down from 0.3% and 2.3%, respectively, in Q1. A marked fall in construction output, the result of weakness in private house building, was largely to blame - down 0.7% on the quarter. However, the slowdown in the dominant service sector was also notable, with growth of just 0.4% on the quarter and 2.1% on the year, the weakest annual growth in 16 years.

Chart 1

This report will add to expectations that the Bank of England's Monetary Policy Committee will leave interest rates on hold for the next few months.

Easing Credit Growth in Euro-zone

Today's ECB data on credit and money supply showed that the pace of loan growth to the private sector is easing, coming in at 9.8% on the year in June, versus 10.5% in May.

Chart 2

In addition, the headline rate of growth in M3 money supply fell to an annual 9.5% in June from 10.0% the month before.

Chart 3

While the pace of credit and monetary expansion is still high for a slowing economy, the fact that they are easing all-but guarantees that the European Central Bank (ECB) won't be making any more rate hikes in the second half of this year.

 

Back to homepage

Leave a comment

Leave a comment