Credence Independent Advisors: The economic recovery of the United Kingdom during the first half of 2014

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The economic recovery of the United Kingdom
during the first half of 2014

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• The economic growth of a country comprises of a
  large number of different factors and a combined
  effect of all the factors makes the final impact.
  
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• Similarly, in order to understand the economic
  growth of United Kingdom, it is important to
  identify the performance of various factors
  regarding the economy such as unemployment,
  investments, gross domestic product, inflation,
  productivity, consumption and many more.
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• Overall, it has been observed that the economic
  factors have been moving in a strong and positive
  direction for the economic conditions of the
  United Kingdom, with the United Kingdom economy
  starting to flourish once again and recovering
  from recession. According to a recent report from
  the Bank of England, the strong performance of
  United Kingdoms economy has proceeded. The
  results for the first quarter of the year show an
  increase of 0.8 economic growth with production
  increasing drastically, unemployment falling
  further and inflation nearing the 2 target.
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• The United Kingdoms production is assessed to
  have grown by 3.1 up to the first quarter of
  2014, with a few pointers indicating
  significantly stronger growth. The Purchasing
  Managers Index survey has pointed out that the
  manufacturing sector has started to flourish with
  the manufacturing output increasing for
  continuously over a year now, according to
  Markit. This increase has led to the creation of
  jobs at a speedy rate in the manufacturing sector
  for over three years now.
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• Employment has also increased rapidly. The labour
  source survey shows the unemployment rate falling
  beneath the Marginal Propensity to Consume 7
  threshold in February. This is now considered to
  be the lowest recorded in the period of the
  previous five years. As a result, Goldman Sachs
  has predicted a fall in unemployment from 6.8 to
  6.5 for the current year.

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• Goldman Sachs has predicted a fall in the
  Consumer Price Index inflation forecast for the
  current year from 1.7 to 1.5 .
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• Housing market restoration is in process with
  transactions up by a third over the previous
  year. Housing costs are up around 10 higher
  broadly underpinned by strong growth in housing
  investment.
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• Having been exceptionally frail over the last
  three years, private sector pay growth has
  started to grow, in spite of the fact that it
  stays well beneath the predicted standards.
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• Lastly, Sterling has reached its highest level
  against the United States dollar in the six year
  period at 1.7149, with 10 appreciation over the
  previous year.
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• The economy of United Kingdom has done
  exceptionally well in the first half of 2014. As
  a result of which even the analysts at Goldman
  Sachs have upgraded the United Kingdom economic
  growth forecast. Analysts have now predicted that
  Gross Domestic Product will grow by 3.4 this
  year instead of 3.