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06/02/2006
Economy recovery 'more likely' says report
The year ahead looks likely to be a brighter one for the UK economy with a retail recovery looking more likely and consumer spending set to be higher than last year.
However, businesses face a difficult start to the year with growth likely to remain slow in the first quarter.
According to the latest Business Trends Report from accountancy firm BDO Stoy Hayward, cooling oil prices and stabilising house prices will ease inflationary pressures in 2006, which will in turn improve consumer optimism and spending.
Although consumer spending growth is unlikely to reach the 2003 highs – which were largely fuelled by the house price boom – improved growth in the retail industry is likely, with spending set to exceed 2005 levels this year.
Despite increased expectations of a downward trend in interest rates in 2006, brought on by falling inflation and improvements in economic growth, BDO Stoy Hayward predicts that the Bank of England’s Monetary Policy Committee will keep interest rates on hold for the next few months as it waits for GDP growth to improve further.
Chris Grove, Partner at BDO, said: “A strong combination of stabilising house prices and cooling oil prices suggest that consumer confidence will improve in 2006, paving the way for a retail recovery. Although we don’t expect the MPC to cut rates this month, it is likely that we will see a cut to 4.25 per cent by the end of the year which will put more money into people’s pockets and please UK businesses.”
The BDO Business Trends Report is prepared for the Centre for Economics and Business Research.
The Government's growth forecast for the UK was recently halved and there are concerns that any pick up in the economy may be delayed as market sectors recover at different rates.
(SP/KMcA)
However, businesses face a difficult start to the year with growth likely to remain slow in the first quarter.
According to the latest Business Trends Report from accountancy firm BDO Stoy Hayward, cooling oil prices and stabilising house prices will ease inflationary pressures in 2006, which will in turn improve consumer optimism and spending.
Although consumer spending growth is unlikely to reach the 2003 highs – which were largely fuelled by the house price boom – improved growth in the retail industry is likely, with spending set to exceed 2005 levels this year.
Despite increased expectations of a downward trend in interest rates in 2006, brought on by falling inflation and improvements in economic growth, BDO Stoy Hayward predicts that the Bank of England’s Monetary Policy Committee will keep interest rates on hold for the next few months as it waits for GDP growth to improve further.
Chris Grove, Partner at BDO, said: “A strong combination of stabilising house prices and cooling oil prices suggest that consumer confidence will improve in 2006, paving the way for a retail recovery. Although we don’t expect the MPC to cut rates this month, it is likely that we will see a cut to 4.25 per cent by the end of the year which will put more money into people’s pockets and please UK businesses.”
The BDO Business Trends Report is prepared for the Centre for Economics and Business Research.
The Government's growth forecast for the UK was recently halved and there are concerns that any pick up in the economy may be delayed as market sectors recover at different rates.
(SP/KMcA)
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28 February 2002
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UK mortgage lender Nationwide has said that house prices may beat growth expectations for the year ahead. Their expectations were made after their monthly property market review said that average house prices grew by 1.6 per cent in February compared to the previous month, and by 14 per cent on the year.
UK house prices set to beat growth expectations
UK mortgage lender Nationwide has said that house prices may beat growth expectations for the year ahead. Their expectations were made after their monthly property market review said that average house prices grew by 1.6 per cent in February compared to the previous month, and by 14 per cent on the year.
24 June 2003
Slowdown expected for construction sector
The growth rate of the UK construction industry is set to halve in 2003, according to the latest forecast from analysts Experian Business Strategies. Growth of 8% is forecast for the current year, which will slow to 4% in 2004 and then down to 3% for 2005.
Slowdown expected for construction sector
The growth rate of the UK construction industry is set to halve in 2003, according to the latest forecast from analysts Experian Business Strategies. Growth of 8% is forecast for the current year, which will slow to 4% in 2004 and then down to 3% for 2005.
02 April 2002
Irish Trade minister welcomes Ireland's strong trade performance
Ireland's Minister for Labour, Trade and Consumer Affairs, Tom Kitt, has welcomed the positive trade performance recorded in the 2001 trade figures issued by the Central Statistics Office (CSO).
Irish Trade minister welcomes Ireland's strong trade performance
Ireland's Minister for Labour, Trade and Consumer Affairs, Tom Kitt, has welcomed the positive trade performance recorded in the 2001 trade figures issued by the Central Statistics Office (CSO).
11 June 2002
Irish economic growth to halve in 2002
The Central Bank of Ireland has said in its annual report that economic growth in Ireland is set to halve in 2002. Growth is likely to fall from 5.9% last year to just 3% in 2002, however next year should see an upturn, the Bank said.
Irish economic growth to halve in 2002
The Central Bank of Ireland has said in its annual report that economic growth in Ireland is set to halve in 2002. Growth is likely to fall from 5.9% last year to just 3% in 2002, however next year should see an upturn, the Bank said.
18 November 2003
Surprise fall in UK inflation rate
Slower growth in house prices and cheaper foreign holidays helped to reduce inflation by 0.2% to from 2.6% for October, the Office for National Statistics (ONS) has announced today. The RPIX inflation rate - which excludes mortgage interest payments and is the government's target measure - was also down, falling to 2.7% in October from 2.
Surprise fall in UK inflation rate
Slower growth in house prices and cheaper foreign holidays helped to reduce inflation by 0.2% to from 2.6% for October, the Office for National Statistics (ONS) has announced today. The RPIX inflation rate - which excludes mortgage interest payments and is the government's target measure - was also down, falling to 2.7% in October from 2.
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Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
