Market comment - Revising up our UK GDP forecasts

Davy Research
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We have revised up our UK GDP growth forecasts a notch to 1.5% in 2018, bringing us in line with consensus. Our first forecast for 2019 is for 1.8% growth, slightly above consensus at 1.5%. The key development since our last forecasts is the EU’s agreement in principle to a transitional arrangement – which has helped business sentiment. Also, the labour market has performed better than expected with jobs growth currently at 1.3% and wage growth accelerating.