Deposit Photos
Deposit Photos 

At the end of last year, there was good news on the UK economy, which saw a reasonable pick-up in the final quarter.  But what happened in January? Did the good news continue?  Brace yourself for some shocking news.


The story of 2017.

In 2016, the story of growth in GDP was as follows


Q1 Q2 Q3 Q4
Euro area 0.6 0.6 0.7 0.6
US 0.3 0.8 0.8 (2.6 annualized, around 0.65 per cent.)
UK 0.3 0.3 0.4 0.5


The UK was clearly in bottom place, but at least it closed the gap at the year’s end.

Now we have the purchasing managers indexes for January.

They look this like this: that’s

Manufacturing Construction Services (Non-manufacturing in the US) Composite Suggest economic growth of?
Euro area,

Source Markit

59.6 57.6 58.8 (output growing at fastest rate in 12 years) 1 per cent (quarter on quarter)



55.3 50.2 53 0.3 per cent quarter on quarter)

Source ISM

59.1 59.9 (highest level since 2005) Four per cent annualised

And this is the result: