Slowdown in UK economic activity in Q1 was temporary – Lloyds Bank

FXStreet (Mumbai) – The Economists at the Lloyds Bank believe the first estimate of UK GDP in 2015 Q2, due for release today, is likely to confirm that the slowdown in the UK economic activity in Q1 was temporary.

Key Quotes

“While the headline PMIs have in aggregate softened in Q2 relative to Q1, other survey data – such as that from the BCC and CBI – suggest a solid ongoing pace of activity.”

“More importantly, official data for the quarter points to a quicker pace of expansion over Q2, with a notable gain in industrial production in April and May – driven by a surge in oil & gas output – offsetting weak outturns for construction.”

“We anticipate a 0.6% quarterly GDP gain. Implicit in this is a 0.2% rise in May’s index of services, in line with its long run average expansion; a stronger 0.3% gain would suggest the likelihood of a 0.7%print for growth of Q2 GDP.”

The Economists at the Lloyds Bank believe the first estimate of UK GDP in 2015 Q2, due for release today, is likely to confirm that the slowdown in the UK economic activity in Q1 was temporary.

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