US growth saw a downward revision in consumer spending activity and UK growth remains hampered by strike action.
The final reading for US GDP for the second quarter was unchanged coming in at 2.1% on an annualised basis. This was a slight improvement of the 2% clip seen in the previous first quarter rate, but it did show an expansion that was just a little less than expected principally due to a downward revision in consumer spending activity.
Meanwhile the UK economy had its final revision of GDP for the second quarter, showing it grew by 0.2% in line with forecasts. Growth in the economy is still at the mercy of strike action across many public services in spite of the first quarter’s growth rate being revised higher to 0.3% from 0.1% with this economic release. It is undeniable that this translates into a slightly better outlook for the UK economy than many had feared but will this seemingly strong resilience of the UK consumer be enough to turn the fortunes of the Tory party ahead of the UK election? On current polling it would suggest not.
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