Citigroup forecast raises spectre of UK double dip

clock

Citigroup and Scotia Capital have predicted a 0.2% contraction in GDP growth for the second quarter, renewing fears of a double-dip recession in the UK.

The banking groups said growth has stuttered following poor sentiment in the manufacturing and construction sectors, reports the Sunday Times. Both the forecasts came after figures at the end of last week showed the construction industry grew just 0.4% in May, leaving the sector 2.7% down year-on-year. Alan Clarke, chief UK economist at Scotia Capital, said the reversal in growth for Q2 may force the Bank of England to implement another round of quantitative easing. "It is going to be a long hard slog and those pinning their hopes on an industrial revolution to drag the wider econo...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot