GDP and migration data, May 2016 - PwC comments

Published at 10:17 AM on 26 May 2016

In response to new GDP and migration data released today, John Hawksworth, chief economist at PwC, commented:

“GDP growth was unrevised at 0.4% in the first quarter, confirming some moderation in growth in response to heightened global uncertainties in January and early February and in relation to the EU referendum from mid-February onwards.

“Business investment fell for a second successive quarter in Q1, though this was offset by higher government investment in that quarter. Consumer spending remained relatively robust as both employment and real earnings continued to rise in the first quarter. But a widening trade deficit took the edge off overall GDP growth.

“Global concerns have eased more recently, but uncertainty related to the EU referendum could lead to a further moderation in growth in the second quarter as some businesses continue to defer investment and hiring decisions. But the economy should rebound in the second half of the year in the event of a vote to Remain.

“The latest migration data showed continued high net inflows reaching around a third of a million in the year to December 2015. This reflects the strength of the UK jobs market last year pulling in more workers from across the EU and beyond. But it is possible that net migration may have eased somewhat during the first half of 2016 as UK employment growth has moderated while the Eurozone economies have gradually recovered.”

Ends.

For further information please contact Tilly Parke: [email protected] / +44 20 7804 8761


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