Anthony Cross on UK Growth

ON UK GROWTH

There is growing confidence among economists and commentators that the UK economy will avoid a double-dip recession in Q1 2012.

This is based on recent data in the services, manufacturing and retail sectors that suggest the economy is showing signs of recovery from the 0.2% decline in Q4 of 2011. Our best guess for the UK economy continues to be that it will undergo a period of slow growth as the process of deleveraging continues. Whether or not the UK avoids recession, we remain optimistic about the prospects of individual companies. Many have strong balance sheets and are therefore well positioned to withstand the current economic environment. We have a bias to international product and service companies. Gr...