UK economy - Revising up our UK GDP growth forecasts

Davy Research
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We have revised up our UK GDP forecasts to 1.5% growth in 2018 and 1.8% in 2019. We still expect Brexit and the government’s deficit reduction programme will weigh on GDP growth and lead to subdued investment spending. Pay growth has accelerated and is now above CPI inflation at 2.7% in February. Hence, we have revised up our forecast for consumer spending to 1.3% growth in 2018 and 1.6% in 2019.