Slowdown in growth natural at this stage

ON UK GROWTH

SIMON MURPHY, manager of the Old Mutual UK Select Equity fund on UK Growth

Various recent economic data releases have signalled a slowdown in growth momentum globally, prompting more bearish commentators to talk of a double-dip recession. We disagree, believing instead this is the natural course of events at this stage in a recovery. Double dips are very rare, occurring just twice in the last 100 years in the US. There could be one this time, but we certainly do not expect it. UK companies remain in good health, with strong balance sheets, record free cashflow levels and continued positive earnings momentum. Earnings growth is now being driven by top-line gr...