The British Economy Scored

The British Economy Scored

about 1 year ago2 mins

The UK economy unexpectedly scored in November, after the World Cup kicked Brits into shape.

What does this mean?

British life is looking stereotypically gray: inflation’s still squeezing budgets, manufacturing orders are dwindling, and public sector strikes are putting a pin in business as usual. But Brits are keeping a characteristically stiff upper lip: the services sector plucked up quicker than expected, while production and construction – the other two major drivers of the UK’s economy – held their own. All in all, the country’s economy picked up 0.1% in November, surprising skeptical analysts.

UK GDP
Source: ONS

And one especially hardy gang deserves a massive participation medal: according to the Office for National Statistics (ONS), sports fans were the economy’s MVP in November. They hit the town no matter the score during the World Cup, celebrating victories with a greasy bag of fish and chips and drowning defeats with an ale. So if the government wants to kick consumer spending up a gear, it knows where to find the right fans for the job.

Contributions to GDP
Source: ONS

Why should I care?

For markets: London’s lovely this time of year.

Now, one solid month doesn’t guarantee a full-fleshed recovery, and the UK still has plenty of lemons to squash if it wants a pint of lemonade. But the news is a glimmer of hope for down-in-the-dumps British assets: the country’s currency has been looking more like pennies than pounds, and investors still aren’t sold on the future of UK stocks. That does mean, though, that they’re going for less these days, so if you believe in Britain’s recovery, they could be a cheap bet on long-term riches.

Zooming out: Just keep swimming.

The UK’s been labeled an ugly ducking lately, but now the country’s transformed into a, uh, slightly less ugly duckling. And it’s not swimming solo, either: Europe and the US are standing firm in the face of relentless rate hikes too. That’s not enough to completely turn the recessionary tide, mind you, but it could mean the current’s a little weaker than expected.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG