Recovery will be “sluggish”, expert claims
Recent increases in the purchasing managers index (PMI) should not be taken as an indication that Britain is entering a strong recovery, one expert has claimed.
Vicky Redwood, economist at Capital Economics, said economic recovery will be “sluggish” over the next two years.
She made the remarks despite conceding that PMI data released this week was “pretty positive”.
Both the manufacturing and service sectors have seen expansion, easing worries that the UK might be heading for a double dip recession in the next quarter.
The figures “should alleviate concerns that the economy is about to fall back into recession this quarter,” Redwood said.
However, she added that there is still a risk of Britain entering a second recession later this year.
Capital Economics expects the UK’s economy to grow by “about one per cent” in the medium to long term, Redwood said.