Friday 14 September 2018
Economic growth leapt upwards in the second quarter, driven by improved performance in retail and construction. Liam Fox’s trade department has brokered a massive aviation export contract with Israel, smashing to pieces Remainer myths about staying in the Single Market for the good of the aerospace industry. Overall, exports are at a record high with the Bank of England revising growth over the next quarter upwards.
Retail growth and a construction boom over the course of the scorching summer have boosted output nationwide. Growth in the three months to July was the fastest in a year: 0.6%, up from 0.4% in the previous three months. The 2.1% rise in consumer spending is particularly encouraging, many economists see it as a sign of an increase in real wages. “The UK is entering the crucial phase of the Brexit talks in better shape than seemed likely six months ago,” said Ian Stewart, chief economist at Deloitte.
…And based on the economy’s strong performance in recent months, the Bank of England has raised its growth forecast from 0.4% to 0.5% for the third quarter. The Bank also noted it had underestimated consumer spending over the second quarter.
Britain’s trade is booming as we prepare for Brexit – with exports hitting a record £616billion high. In the last year our trade balance has narrowed as more and more goods and services are being exported all over the world, new figures reveal. Trade Secretary Liam Fox said Britain was continuing to defy the doom-mongers as we gear up for Brexit. The UK’s top exports were cars, medicinal products, power generators and aircraft in the last 12 months, ONS figures showed.
Oh the Irony! While London disproportionately favours the EU, with almost 60% of the capital’s residents voting Remain, the city has thrived during the aftermath. Economic growth is higher in London than in the rest of the country. Construction is up 3.3% Meanwhile, the city’s housing crisis is slowly being resolved as population growth slows thanks to less immigration, placing a much-needed dampener on inflation, both for renters and buyers. Good news for one of the most expensive cities in the world to live in.
Who says you need to be in the EU to be part of an aviation supply chain? Airbus UK may make wings for assembly in France, but Rolls Royce engines made in Derby go way beyond the bloc. Trent 1000 engines will be supplied to EL AL Israel Airlines via the 787 Dreamliner assembly line at Everett Washington, home of Boeing. The deal, the largest ever export package with Israel, was leveraged by the Department for International Trade’s export finance division – the department issues low-cost credit for lower risk trading opportunities the world over. The majority of Roll’s Royce’s revenues will come from the maintenance of the engines in Israel.