This week's surveys suggest that the economy has maintained its early momentum, even if it has not yet been able to take off to a new level.
It was another busy week for the UK economy in which we got fresh data on inflation and another interest rate decision from the Bank of England. Before asking where it all leaves the UK economy, its worth a quick recap. On Wednesday, inflation fell to 3.4 per cent thanks largely to falling food prices. This was slightly lower than the 3.5 per cent expected by economists. Services inflation also fell, but remained elevated at 6.1 per cent.
For example, consumer confidence hit a two-year high in January; retail sales rebounded robustly from a poor December; and the PMI hit a nine-month high in February. This week’s surveys suggest that the economy has maintained its early momentum, even if it has not yet been able to take off to a new level. However, this week gives us two very good reasons to think that things will continue getting better. First, inflation.
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