Economic Review – January 2018

The UK economy showed signs of resilience during the final quarter of 2017
recording a higher than expected rate of growth, although Brexit concerns still weigh on economic prospects.

The UK manufacturing sector is growing at its fastest rate since early 2008,
boosted by a potent combination of strong global economic growth and the weaker pound.

As the first month of 2018 drew to a close and the World Economic Forum concluded in Davos, the focus shifted firmly onto the US, as markets braced themselves for President Trump’s first State of the Union address to Congress on 30 Jan, and Janet Yellen’s last Fed meeting as Chair.

Retail sales in December fell at a sharper than expected rate as UK consumers struggled to cope with rising prices and stagnant wages.

The pace of job creation in the UK quickened during the autumn months, with the total number of people in work rising to a new record high.