Macroeconomic conditions in the UK remain firm overall, despite some signs of slowing consumption and a moderating housing market, Moody’s Investors Service said in its latest Brexit Monitor on Thursday.
- A pick-up in industrial production, particularly in the capital goods segment, has supported UK economic activity in early 2017
- While indicators point to risks of softer consumption growth, surveys suggest output growth is resilient
- Investment sentiment has returned to pre-referendum levels in the first two months of the year
- Consumption-related indicators are in line with five-year averages, but lost some momentum in the first quarter
- Consumer price inflation is broadly in line with five-year averages, but has edged higher since the referendum on the back of rising import prices