UK policy makers should receive good news on the economy later this week when preliminary estimates for gross domestic product (GDP) growth in the second quarter are released on Thursday, according to Chief Investment Officer Haig Bathgate.
Commentators are predicting the economy expanded 0.6% in the April-to-June period. Data covering various components of our economy have corroborated the positive expectation. People are spending more – a key sign of increased confidence – with retail sales up 2.2% in the 12 months to June. Earlier this month some of the country's biggest homebuilders said the housing market is recovering. Still, the GDP number should be taken with a pinch of salt – this is still only a preliminary report and information may come in later that could lower the growth estimate.
The more positive economic environment globally is also underpinning the performance of stock markets around the world – the US Standard & Poor's 500 index closed at a record high on Friday. Again though, some caution is required. During the summer, trading in equities is very thin meaning that small morsels of information can have a larger-than-justified impact on markets.
Haig, appearing on BBC Radio's Good Morning Scotland, also commented on expectations for earnings at GlaxoSmithKline, BT Group, BSkyB and Unilever.
This content was generated prior to Turcan Connell Asset Management Limited operating as Tcam.