UK Consumers and Businesses Reign in Spending

U.K. consumer-spending growth slowed in the second quarter as car sales fell and business investment stagnated, holding back economic momentum.The 0.1 percent increase in household expenditure was the weakest since 2014 and meant consumer activity added just 0.1 percentage point to gross domestic product. Business investment flatlined and net trade failed to contribute to growth for a second consecutive quarter. Car sales declined after a strong first quarter, when demand was boosted ahead of a tax change.The economy grew 0.3 percent in the period, unrevised from an initial estimate. Over the first six months of the year, it recorded its weakest performance since 2012, and the Office for National Statistics said expansion has “slowed markedly.”

Source: U.K. Consumer Spending Barely Grows, Restraining Economy – Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.