U.K. economic growth accelerated in the second quarter as higher consumer spending helped to blunt the impact of a drop in business investment.
A U.K. factory index increased to a 2 1/2-year high in August, while a pickup in Italy and Spain helped euro-area manufacturing expand faster than initially estimated, evidence the region’s recovery is building momentum.
U.K. house-price growth accelerated in August amid the strongest market conditions for six years as demand continued to outpace the number of homes for sale, Hometrack Ltd. said.
U.K. factory production grew at a record pace in the third quarter on surging export demand, the Engineering Employers Federation said.
Prime Minister David Cameron’s government should enhance its growth strategy as the British economy heads for its first full-year contraction since 2009, the Engineering Employers’ Federation said.
The proportion of U.K. engineering manufacturers predicting price increases in the next quarter reached the highest level in more than two years, the Engineering Employers Federation said.
The pound strengthened against the dollar, snapping a two-day decline, as optimism that euro-area leaders are acting to ease the region’s debt crisis spurred demand for higher-yielding assets.
U.K. pay growth at manufacturers accelerated in the three months through April, the Engineering Employers Federation said.
"The prospects for the remainder of this year look better than we've seen for a number of years."
- Lee Hopley on Sep 26, 2013