25/08/2017 - UK Growth Slows

GBP

The UK GDP second estimate confirmed that the pace of growth in the UK economy slowed more-than expected in the second quarter of this year, as reflected by the preliminary figures. The report showed that the GDP figures came in at 0.3% q/q in the second quarter of 2017, same as that booked in the first reading.

Net migration to Britain fell to its lowest level in three years in the 12 months to the end of March, with more than half the drop caused by European Union citizens leaving and fewer arriving since the Brexit vote. The biggest drop in the figures came from eight eastern European countries, including Poland and Hungary, that joined the EU in 2004, leading to a migration to Britain of many eastern Europeans hoping for better-paid jobs.

Within the 246,000, some 127,000 were from the EU, down 51,000 to its lowest level since the 12 months ending December 2013, as emigration rose and immigration fell compared to the previous 12 months. Business leaders said the drop in net migration was a serious concern for firms worried about wage inflation and an inability to fill skills gaps with British workers.

Mortgage approvals from British banks hit a five-month high in July but growth in credit card lending slowed a little, industry figures showed on Thursday.

British banks approved 41,587 mortgages for house purchases last month, up from 40,385 in June and 9 percent higher than in July 2016, the month that followed the vote to leave the European Union, UK Finance said. The figures also showed that growth in personal banking deposits hit its lowest since June 2009, rising 2.3 percent in the year to July - slowing from 2.5 percent in June.

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