UK economy – news in brief

A leading economic think tank, The National Institute of Economic and Social Research (NIESR), last week bumped up its forecast for UK economic growth in 2014. Increasing evidence of a robust, sustainable recovery prompted the NIESR to say that it expected growth to be 3% for the year, having finally exceeded its pre-crash size in quarter two.

This continues a recent theme of increased growth forecasts for the UK economy and came with the also familiar refrain around ongoing concerns over productivity (output per person), real wage rates not increasing in line with growth and the risk of an over-heating housing and mortgage-lending market.

Despite this, it said that it believed the recovery in the UK economy was now entrenched – surely reassuring news – but it also noted that growth in the quarter to July was the lowest for a year and predicts growth slowing to 2.3% in 2015.

Posted by John Hoskin