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Economic growth for Q1 is announced!

 

Posted on 5 May 2017

Figures released last week reveal the rate of growth in the UK economy has risen by 0.3%, assuring the 17th consecutive quarter of growth. This encouragingly affirmative figure has defied widespread predictions of a recession in the light of Brexit, and provides a much needed vote of confidence for our economy’s resilience.

A number of industries proved their determination to succeed and experienced higher levels of growth in the opening months of 2017 than in previous quarters, some even in years!

Car Manufacturing for example grew by 0.5%, hitting a 17 year high as the depreciation in sterling made UK made cars incredibly attractive, drawing attention from foreign investors keen to prosper from lucrative international trade deals, in turn hiking up levels of export. Consumer facing sectors, such as Retail, which combine to make up three quarters of the UK economy maintained positive levels of growth. This was despite a number of external factors such as the rise in prices due to higher import costs. Food and beverage activities also offset any doubts about the growth of our economy, and reported hardy figures of expansion and as a sector, Business Services and Finance grew by an impressive 0.7% (up from 0.5% in Q4), with Accounting and Travel both performing strongly in this quarter.

Critically, the most important message we can draw is that the economy is continuing to grow, when many believed this would be impossible in light of Brexit. SME’s have played a vital role in boosting recent UK productivity and economic growth, and Smith Cooper Corporate Finance alone experienced exceptionally high levels of activity in Q1, expelling any concerns of the buoyancy of our industry. If you would like to take a look at our annual round-up of Corporate Finance deals for the last financial year, please click here.

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