UK GDP growth nudges up to 0.3pc; consumer spending growth at slowest since 2014
The UK economy grew by 0.3pc in the second quarter, the ONS has confirmed, a slight pick-up from the first quarter Consumer spending growth slowed to 0.1pc, its worst since the fourth quarter of 2014 Dixons Carphone plunges 30pc after issuing a profit warning; customers holding onto phones for longer blamed for the downgrade European stock markets rebound after Trump-related losses yesterday; FTSE 100 nudges up 0.4pc 11:29AM GDP growth reaction: Drop in car sales could partly explain consumer spending drop A drop in car sales could explain part of the fall in consumer spending Capital Economics’ UK economist Paul Hollingsworth has pointed out that the fall in spending on cars following the introduction of the Vehicle Excise Duty in April could explain some of today’s fall. Car sales spiked just before the new tax was introduced and have experienced several consecutive months of decline since. Mr Hollingsworth explained: “While Q2’s breakdown was fairly disappointing, it is worth noting that the slowdown in household spending growth was partly driven by a fall in spending on cars, which probably reflected shifting purchases to beat the change in Vehicle Excise Duty earlier this year. Growth in car spending is therefore unlikely to take another sharp leg down. “What’s more, survey measures of firms’ investment intentions suggest that Q2’s slowdown in business investment will prove short-lived. And firms’ export orders continue to point to a strengthening in export growth, while the slowdown in consumer spending growth should curtail growth in imports.” 11:20AM Premier Oil raises production guidance after record start to the year Premier’s production in the first half of the year jumped 35pc to record levels Premier Oil has raised its full-year production guidance after production in the first half of the year jumped 35pc to record levels. The oil and …Read the rest of this story
Source:: https://finance.yahoo.com/news/dixons-carphone-plummets-30pc-profit-073328039.html
