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23/05/2003
UK consumer spending slows sharply
The latest figures from the Office of National Statistics have revealed that in the first quarter of this year growth in consumer spending has slumped to the lowest level in six years.
Growth in spending by UK consumers slipped to 0.4%, down from 1.1% in the same period last year.
The report on consumer spending is in line with expectations following a report indicating that retail spending in Q1 was down significantly.
The ONS report confirms what many analysts had suspected that a consumer slowdown in the UK is well underway. But the slowdown has occurred at a bad time for the UK, where other sectors are also in a slow phase and consequently unable to support the economy.
Economists expected the ONS to downwardly revise the forecast for economic growth from a figure of 0.2%, though many analysts fear that this figure may be even lower than expected indicating a widespread cross-sector slowdown in the UK economy.
The figures have fuelled yet more speculation that there may be another cut in interest rates later this year, if the scenario of a cooling economy continues to develop.
But Bank of England Governor, Sir Eddy George, said earlier this week that despite a slowdown in the consumer sector, business investment, which had risen by 0.8% in Q1, could partly offset the dip in consumer spending.
(SP)
Growth in spending by UK consumers slipped to 0.4%, down from 1.1% in the same period last year.
The report on consumer spending is in line with expectations following a report indicating that retail spending in Q1 was down significantly.
The ONS report confirms what many analysts had suspected that a consumer slowdown in the UK is well underway. But the slowdown has occurred at a bad time for the UK, where other sectors are also in a slow phase and consequently unable to support the economy.
Economists expected the ONS to downwardly revise the forecast for economic growth from a figure of 0.2%, though many analysts fear that this figure may be even lower than expected indicating a widespread cross-sector slowdown in the UK economy.
The figures have fuelled yet more speculation that there may be another cut in interest rates later this year, if the scenario of a cooling economy continues to develop.
But Bank of England Governor, Sir Eddy George, said earlier this week that despite a slowdown in the consumer sector, business investment, which had risen by 0.8% in Q1, could partly offset the dip in consumer spending.
(SP)
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UK consumer spending slows in Q1
Consumer spending has slowed in the UK in the first quarter, but overall this was evened out by increased activity in the manufacturing sector, as the level of UK performance reached the expected 2.2% figure for the year. The latest figures from the Office for National Statistics revealed that the UK's Gross Domestic Product grew at 0.
UK consumer spending slows in Q1
Consumer spending has slowed in the UK in the first quarter, but overall this was evened out by increased activity in the manufacturing sector, as the level of UK performance reached the expected 2.2% figure for the year. The latest figures from the Office for National Statistics revealed that the UK's Gross Domestic Product grew at 0.
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UK consumer sector slowdown larger than expected
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More Weekend Shoppers Head For The High Street
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10 March 2005
Borrowing rate pegged at 4.75%
The interest rate on borrowing has remained at 4.75% as the Bank of England's Monetary Policy Committee (MPC) announced its latest decision to peg the rate for the seventh month in a row. The MPC has not increased interest rates since last year, when the rate rose over five consecutive months from a low of 3.5% in November 2003 to stand at 4.
Borrowing rate pegged at 4.75%
The interest rate on borrowing has remained at 4.75% as the Bank of England's Monetary Policy Committee (MPC) announced its latest decision to peg the rate for the seventh month in a row. The MPC has not increased interest rates since last year, when the rate rose over five consecutive months from a low of 3.5% in November 2003 to stand at 4.
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
