Shopping Basket is Empty

You have no items in your shopping basket.

Click here to continue shopping.

First name is required!
Last name is required!
First name is not valid!
Last name is not valid!
This is not an email address!
Email address is required!
This email is already registered!
Password is required!
Enter a valid password!
Please enter 6 or more characters!
Please enter 16 or less characters!
Passwords are not same!
Terms and Conditions are required!
Email or Password is wrong!

Hammond Suggests UK Economy Will Adjust to Weak Sterling

25 Jul 2017 01:07:57

Phillip Hammond, the chancellor of the exchequer, has suggested that over time Britain’s economy will adjust to the new reality in regards to the value of sterling.

The statement came on Tuesday (18/07), when the minister was asked by a lawmaker about the impact that the still-depressed value of sterling would have. "The short run effect of a depreciation of sterling would be expected to be a decline in our trade balance performance as we suck in more expensive, in sterling terms, imports," Hammond said.

"But over time, and there's signs the economy is doing this now, the economy will adjust, with exporters increasing their output to take advantage of weaker sterling and their greater competitiveness in international markets."

The value of the pound has fallen significantly since Britain voted to leave the European Union, which has had a number of interesting effects, particularly on the UK’s manufacturing industry.

Specifically, the fall in the pound has meant a short-term boost in sales and manufacturing output for UK companies, increasing confidence in the sector. However, new research has found that the UK economy is on course for a deeper slowdown than expected, as consumer spending and business investment take a hit from Brexit uncertainty.

According to PwC’s UK Economic Outlook report, Britain’s GDP is expected to drop from 1.8% last year to 1.5% in 2017 and 1.4% in 2018. The firm have downgraded the prediction from their previous estimate, which had the 2017 GDP at 1.6%. That might sound like a small drop, but given the sums involved, it’s a significant amount of money, and a key indicator for potential investment firms planning on involving themselves in the UK.

Consumer spending has been a key driver for the UK’s economy, but household spending power is also under threat from a combination of higher inflation and lagging wage growth. John Hawksworth, PwC’s chief economist, said that Brexit uncertainty would also put the brakes on business investment as firms waited to see the fallout from the Brexit situation.

He said: “Brexit-related uncertainty may hold back business investment, but this should be partly offset by planned rises in public investment.

“Fiscal policy could also be further relaxed in the 2017 Autumn Budget to offset the ongoing real squeeze on household spending power.”

Nevertheless, the UK is only predicted to suffer a mild economic slowdown, rather than a full recession, which some had feared. It’s mixed news for the manufacturing industry, which suffers a knock-on effect from other industries, thanks to the manufacturing chain. For UK manufactures like us who produce stainless steel hose fittings, that’s not great news.

The report indicated that growth in house prices is set to stall too, hitting 3.7% this year from the 7% seen in 2016. Richard Snook, senior economist at PwC, said: “There is a huge disparity in how sub-regional housing markets have performed since the recession.

“The local authorities that have experienced the greatest falls in house prices since 2007 are all based in Northern Ireland, while London dominates biggest risers with all boroughs experiencing price growth of over 50 per cent.”

 

Posted In: Uncategorized
Tags:

"Custom Fittings are a 1st tier supplier to GS Hydro for stainless steel high and low pressure hydraulic components. For over 20 years Custom Fittings have been our preferred supplier due to the high ..." Chris Hargreaves, Managing Director - GS Hydro UK

We have been using Custom Fittings for many years now, they offer fantastic customer service as well as top of the range products. We could not recommend them more highly and will continue to use them..." James Tidy, Director - Tidyco Ltd

"Custom Fittings have been the number one supplier for stainless steel fittings to Fluid Power Services for over 25 years now.In the early years our requirements were for standard off the shelf parts ..." Anthony Smith, Sales Director - Fluid Power Services Ltd

"We have now been using Custom Fittings for over 10 years as our preferred supplier for all our hygienic hose inserts & ferrules ,We have found the quality of the finished products & the sales..." Paul Murphy, Sales Director - Dockweiler UK

Follows us

SSL Certificate
Paypal Logo Visa Logo Maestro Logo Mastercard Logo American Express Logo
TOP