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| Version 1 | Version 2 |
|---|---|
| US economy grows at fastest pace in a decade – live | US economy grows at fastest pace in a decade – live |
| (about 21 hours later) | |
| 5.03pm GMT | 5.03pm GMT |
| 17:03 | 17:03 |
| European markets keep Santa rally going | European markets keep Santa rally going |
| On the last full trading day before Christmas, European shares shrugged off worries about the weak oil price to record another positive performance. There was a mixed bag of economic news, with UK growth disappointing but US GDP stronger than expected. The failure of the second Greek presidential vote, while not unexpected, acted as a slight restraint on the positive mood, with the Athens market not surprisingly falling back. The final scores showed: | On the last full trading day before Christmas, European shares shrugged off worries about the weak oil price to record another positive performance. There was a mixed bag of economic news, with UK growth disappointing but US GDP stronger than expected. The failure of the second Greek presidential vote, while not unexpected, acted as a slight restraint on the positive mood, with the Athens market not surprisingly falling back. The final scores showed: |
| On Wall Street the Dow Jones Industrial Average is currently 81 points or 0.45% higher at 18,040. | On Wall Street the Dow Jones Industrial Average is currently 81 points or 0.45% higher at 18,040. |
| The rouble is up around 1.6% to just below 55 to the dollar, while Brent crude is up 1% at $60.74. | The rouble is up around 1.6% to just below 55 to the dollar, while Brent crude is up 1% at $60.74. |
| On that note it’s time to close up for the evening. Thanks for all your comments and we’ll be back tomorrow. | On that note it’s time to close up for the evening. Thanks for all your comments and we’ll be back tomorrow. |
| 3.50pm GMT | 3.50pm GMT |
| 15:50 | 15:50 |
| Dow set for the fifth fastest 1,000-point rise in history. $DJIA http://t.co/ZzRNzbtvdO pic.twitter.com/utbo1kCpZ0 | Dow set for the fifth fastest 1,000-point rise in history. $DJIA http://t.co/ZzRNzbtvdO pic.twitter.com/utbo1kCpZ0 |
| 3.16pm GMT | 3.16pm GMT |
| 15:16 | 15:16 |
| As the Dow Jones Industrial Average passes through 18,000 to a new high, and the S&P 500 also setting an intra-day record in the wake of the GDP figures, it is no surprise that the US is outpacing other markets. But here’s the visual evidence: | As the Dow Jones Industrial Average passes through 18,000 to a new high, and the S&P 500 also setting an intra-day record in the wake of the GDP figures, it is no surprise that the US is outpacing other markets. But here’s the visual evidence: |
| A contender for chart of the year: MSCI World Index (excluding the U.S.) vs. the MSCI U.S. Index pic.twitter.com/oVW4VzpcHG | A contender for chart of the year: MSCI World Index (excluding the U.S.) vs. the MSCI U.S. Index pic.twitter.com/oVW4VzpcHG |
| 3.07pm GMT | 3.07pm GMT |
| 15:07 | 15:07 |
| And now a disappointing US number. | And now a disappointing US number. |
| Sales of new single family homes fell for the second month in a row in November, down 1.6% to a seasonally adjusted annual rate of 438,000 units compared with expectations of a rise to 460,000. | Sales of new single family homes fell for the second month in a row in November, down 1.6% to a seasonally adjusted annual rate of 438,000 units compared with expectations of a rise to 460,000. |
| To emphasise the fragility of the US housing market, October’s figure was revised down from 458,000 to 445,000. | To emphasise the fragility of the US housing market, October’s figure was revised down from 458,000 to 445,000. |
| US New Home Sales drop 1.6% in November following on from yesterday's poor Existing Home sales numbers. | US New Home Sales drop 1.6% in November following on from yesterday's poor Existing Home sales numbers. |
| Separately consumer spending recorded its biggest gain in three months, up 0.6% in November according to the Commerce Department, as the fall in oil prices gave people more disposable income. | Separately consumer spending recorded its biggest gain in three months, up 0.6% in November according to the Commerce Department, as the fall in oil prices gave people more disposable income. |
| Updated | Updated |
| at 3.10pm GMT | at 3.10pm GMT |
| 3.03pm GMT | 3.03pm GMT |
| 15:03 | 15:03 |
| US consumer confidence hit its best level for nearly eight years this month, thanks to cheaper petrol (sorry, gasoline) prices and better job and wage prospects. | US consumer confidence hit its best level for nearly eight years this month, thanks to cheaper petrol (sorry, gasoline) prices and better job and wage prospects. |
| The Thomson Reuters/University of Michigan index came in at 93.6 on its final reading, the highest since January 2007 and up from 88.8 in November. It was just below the initial estimate of 93.8 but better than the 93.5 that analysts had been expecting. | The Thomson Reuters/University of Michigan index came in at 93.6 on its final reading, the highest since January 2007 and up from 88.8 in November. It was just below the initial estimate of 93.8 but better than the 93.5 that analysts had been expecting. |
| Richard Curtin, the survey’s director, said: | Richard Curtin, the survey’s director, said: |
| Consumers held the most favourable long-term prospects for the national economy in the past decade. Importantly, the 2014 gains in jobs and wages were widespread across all population subgroups and regions. | Consumers held the most favourable long-term prospects for the national economy in the past decade. Importantly, the 2014 gains in jobs and wages were widespread across all population subgroups and regions. |
| 2.52pm GMT | 2.52pm GMT |
| 14:52 | 14:52 |
| Of course, the upbeat US data has revived the prospect of higher interest rates from the Federal Reserve, reflected in a rise in the dollar. Michael Hewson at CMC Markets said: | Of course, the upbeat US data has revived the prospect of higher interest rates from the Federal Reserve, reflected in a rise in the dollar. Michael Hewson at CMC Markets said: |
| What this data does...is raise expectations that the Fed might find it much more difficult to resist calls for tighter policy as we head into 2015 irrespective of the deflationary effects of the recent falls in the oil price. | What this data does...is raise expectations that the Fed might find it much more difficult to resist calls for tighter policy as we head into 2015 irrespective of the deflationary effects of the recent falls in the oil price. |
| The performance of the US dollar would also appear to reflect that with the US dollar index posting its best levels since 2006, and the euro/dollar and dollar/yen looking to test and potentially break some very important technical levels. | The performance of the US dollar would also appear to reflect that with the US dollar index posting its best levels since 2006, and the euro/dollar and dollar/yen looking to test and potentially break some very important technical levels. |
| 2.33pm GMT | 2.33pm GMT |
| 14:33 | 14:33 |
| Dow Jones hits 18,000 for the first time | Dow Jones hits 18,000 for the first time |
| Wall Street has opened, and in the wake of the better than expected US growth numbers, it has opened well. | Wall Street has opened, and in the wake of the better than expected US growth numbers, it has opened well. |
| The Dow Jones Industrial Average is up 54 points or 0.3% to break through the 18,000 barrier for the first time. while the S&P has climbed 4.42 points or 0.2%. | The Dow Jones Industrial Average is up 54 points or 0.3% to break through the 18,000 barrier for the first time. while the S&P has climbed 4.42 points or 0.2%. |
| More US data is due shortly, including confidence, housing and manufacturing figures. | More US data is due shortly, including confidence, housing and manufacturing figures. |
| Dow Jones above 18,000, meaning it has risen 1,000 points ... in just one week: pic.twitter.com/wAFUZ44Y6A | Dow Jones above 18,000, meaning it has risen 1,000 points ... in just one week: pic.twitter.com/wAFUZ44Y6A |
| Updated | Updated |
| at 2.54pm GMT | at 2.54pm GMT |
| 2.23pm GMT | 2.23pm GMT |
| 14:23 | 14:23 |
| Allianz chief economist, Mohamed El-Erian, points out that the US is diverging from other advanced economies.... | Allianz chief economist, Mohamed El-Erian, points out that the US is diverging from other advanced economies.... |
| The "wow" revision (up to 5%) in US Q3 #GDP higlights global economic/policy #divergence . Look for many analysts to revist 2015 projections | The "wow" revision (up to 5%) in US Q3 #GDP higlights global economic/policy #divergence . Look for many analysts to revist 2015 projections |
| 2.21pm GMT | 2.21pm GMT |
| 14:21 | 14:21 |
| Respective GDP revisions today another reason to expect the Fed to hike rates before the Bank of England. | Respective GDP revisions today another reason to expect the Fed to hike rates before the Bank of England. |
| 2.20pm GMT | 2.20pm GMT |
| 14:20 | 14:20 |
| There is one small fly in the ointment - sales of US durable goods (items meant to last at least three years) fell by 0.7% in November. | There is one small fly in the ointment - sales of US durable goods (items meant to last at least three years) fell by 0.7% in November. |
| 2.14pm GMT | 2.14pm GMT |
| 14:14 | 14:14 |
| This is the latest in a stream of decent-looking US economic data that hasn’t (yet at least) boosted president Obama’s popularity, points out the FT’s Richard Blackden: | This is the latest in a stream of decent-looking US economic data that hasn’t (yet at least) boosted president Obama’s popularity, points out the FT’s Richard Blackden: |
| US GDP: 5%, Job growth: 321,000; Gas:$2.40 Obama poll rating: 45%. Clinton adage "it's all about the economy" looks out of date post crisis | US GDP: 5%, Job growth: 321,000; Gas:$2.40 Obama poll rating: 45%. Clinton adage "it's all about the economy" looks out of date post crisis |
| 2.11pm GMT | 2.11pm GMT |
| 14:11 | 14:11 |
| US growth rate surges to 5%: Early reaction | US growth rate surges to 5%: Early reaction |
| From 1981-2000, US had 21 quarters of 5% real GDP growth or faster, since then, just 2 -- including 3Q 2014 | From 1981-2000, US had 21 quarters of 5% real GDP growth or faster, since then, just 2 -- including 3Q 2014 |
| US GDP data just enhanced US/Eurozone economies' decoupling. US rates hike & EZ QE getting closer. | US GDP data just enhanced US/Eurozone economies' decoupling. US rates hike & EZ QE getting closer. |
| Blistering 5% US GDP growth pushes dollar to 8-yr high. Increasingly looks like its 3-decade downtrend may be over: pic.twitter.com/wTOLerOkGV | Blistering 5% US GDP growth pushes dollar to 8-yr high. Increasingly looks like its 3-decade downtrend may be over: pic.twitter.com/wTOLerOkGV |
| Merry Xmas #US - #Consumer spending powers Q3 #GDP to 5.0% #rate http://t.co/FKthV0EQ3K #Market #Business #Investment #Equity #Stocks #Money | Merry Xmas #US - #Consumer spending powers Q3 #GDP to 5.0% #rate http://t.co/FKthV0EQ3K #Market #Business #Investment #Equity #Stocks #Money |
| 2.03pm GMT | 2.03pm GMT |
| 14:03 | 14:03 |
| The outlook for US growth looks “rosy”, says Paul Dales of Capital Economics, even though today’s data shows families had to dip into their savings. | The outlook for US growth looks “rosy”, says Paul Dales of Capital Economics, even though today’s data shows families had to dip into their savings. |
| Dales explains: | Dales explains: |
| The upward revision to third-quarter annualised GDP growth, to 5.0% from 3.9% (consensus 4.3%), left the economy expanding at its fastest rate in 11 years. The revision was mainly due to faster consumption growth (3.2% v.s. 2.2%). That was despite a downward revision to annualised growth of real disposable incomes (to 2.0% from 2.3%), which suggests households reduced their saving rate. | The upward revision to third-quarter annualised GDP growth, to 5.0% from 3.9% (consensus 4.3%), left the economy expanding at its fastest rate in 11 years. The revision was mainly due to faster consumption growth (3.2% v.s. 2.2%). That was despite a downward revision to annualised growth of real disposable incomes (to 2.0% from 2.3%), which suggests households reduced their saving rate. |
| 1.59pm GMT | 1.59pm GMT |
| 13:59 | 13:59 |
| The US Dow Jones index is expected to smash through the 18,000 point mark for the first time, when trading begins in 30 minutes. | The US Dow Jones index is expected to smash through the 18,000 point mark for the first time, when trading begins in 30 minutes. |
| ALERT: Dow futures indicating an open above 18,000 for the first time ever. http://t.co/SLY593j96l pic.twitter.com/TgUssc2OKd | ALERT: Dow futures indicating an open above 18,000 for the first time ever. http://t.co/SLY593j96l pic.twitter.com/TgUssc2OKd |
| 1.56pm GMT | 1.56pm GMT |
| 13:56 | 13:56 |
| AP: US growth is sizzling | AP: US growth is sizzling |
| Here’s Associated Press’s take on the forecast-busting American growth data: | Here’s Associated Press’s take on the forecast-busting American growth data: |
| US economy grew at fast 5 pct. annual rate in Q3 | US economy grew at fast 5 pct. annual rate in Q3 |
| The U.S. economy grew at a sizzling 5% annual rate in the July-September period, the fastest in more than a decade, boosted by strength in consumer spending and business investment. | The U.S. economy grew at a sizzling 5% annual rate in the July-September period, the fastest in more than a decade, boosted by strength in consumer spending and business investment. |
| The Commerce Department on Tuesday sharply revised up its estimate of third-quarter growth from a previous figure of 3.9%. Much of the strength came from consumer spending on health care and business spending on structures and computer software. | The Commerce Department on Tuesday sharply revised up its estimate of third-quarter growth from a previous figure of 3.9%. Much of the strength came from consumer spending on health care and business spending on structures and computer software. |
| It was the fastest quarterly growth since the summer of 2003. It followed a 4.6% annual growth rate in the April-June quarter. | It was the fastest quarterly growth since the summer of 2003. It followed a 4.6% annual growth rate in the April-June quarter. |
| Most economists think growth is slowing to an annual rate of around 2.5% in the current October-December quarter. They foresee growth around 3% in 2015. | Most economists think growth is slowing to an annual rate of around 2.5% in the current October-December quarter. They foresee growth around 3% in 2015. |
| That would be the strongest figure since the economy expanded 3.3% in 2005, two years before the Great Recession began. | That would be the strongest figure since the economy expanded 3.3% in 2005, two years before the Great Recession began. |
| The 2007-2009 downturn, the worst since the 1930s, cost millions of people their jobs. Since then, the economy has struggled to regain full health. Even after the recession ended in June 2009, the economy has turned in mediocre growth rates averaging 2.2 percent annually. | The 2007-2009 downturn, the worst since the 1930s, cost millions of people their jobs. Since then, the economy has struggled to regain full health. Even after the recession ended in June 2009, the economy has turned in mediocre growth rates averaging 2.2 percent annually. |
| But many analysts think growth is finally set to accelerate as more businesses have grown confident about hiring. The country is on track to have its healthiest year for job growth since 1999. In November, employers added 321,000 jobs, the biggest one-month increase in three years. | But many analysts think growth is finally set to accelerate as more businesses have grown confident about hiring. The country is on track to have its healthiest year for job growth since 1999. In November, employers added 321,000 jobs, the biggest one-month increase in three years. |
| With more people working and having money to spend, solid gains are expected in consumer spending, which accounts for about 70 percent of the economy. | With more people working and having money to spend, solid gains are expected in consumer spending, which accounts for about 70 percent of the economy. |
| Updated | Updated |
| at 1.57pm GMT | at 1.57pm GMT |
| 1.52pm GMT | 1.52pm GMT |
| 13:52 | 13:52 |
| A quick note: It can be confusing to compare US and UK GDP data, because America reports an ‘annualised’ growth rate, in this case a remarkable 5.0%. | A quick note: It can be confusing to compare US and UK GDP data, because America reports an ‘annualised’ growth rate, in this case a remarkable 5.0%. |
| That means it actually grew by around 1.25% in July-September. | That means it actually grew by around 1.25% in July-September. |
| In comparison, the UK expanded by 0.7%, or 2.8% on an annualised basis. That’s different to Britain’s year-on-year growth rate, which was revised down to 2.6% earlier today. | In comparison, the UK expanded by 0.7%, or 2.8% on an annualised basis. That’s different to Britain’s year-on-year growth rate, which was revised down to 2.6% earlier today. |
| Updated | Updated |
| at 1.54pm GMT | at 1.54pm GMT |
| 1.49pm GMT | 1.49pm GMT |
| 13:49 | 13:49 |
| The Commerce Department says that personal consumption, business investment, federal and local government spending, and exports all contributed to US growth in the last quarter. | The Commerce Department says that personal consumption, business investment, federal and local government spending, and exports all contributed to US growth in the last quarter. |
| 1.46pm GMT | 1.46pm GMT |
| 13:46 | 13:46 |
| US consumer spending and business investment were both stronger than first estimated, leading the US Commerce Department to revise up its estimate for US growth to 5% (annualised). | US consumer spending and business investment were both stronger than first estimated, leading the US Commerce Department to revise up its estimate for US growth to 5% (annualised). |
| 1.34pm GMT | 1.34pm GMT |
| 13:34 | 13:34 |
| US smashes forecasts with 5.0% annualised growth | US smashes forecasts with 5.0% annualised growth |
| Breaking! The US economy grew at a blistering 5.0% annual rate in the third quarter of 2014, the fastest rate in over a decade. | Breaking! The US economy grew at a blistering 5.0% annual rate in the third quarter of 2014, the fastest rate in over a decade. |
| That’s the equivalent of 1.25% growth quarter-on-quarter. | That’s the equivalent of 1.25% growth quarter-on-quarter. |
| The previous estimate was a 3.9% annual rate, or almost 1% quarter-on-quarter. | The previous estimate was a 3.9% annual rate, or almost 1% quarter-on-quarter. |
| So, a BIG beat, and a genuinely strong reading. It’s the fastest quarterly rate since the third quarter of 2003. | So, a BIG beat, and a genuinely strong reading. It’s the fastest quarterly rate since the third quarter of 2003. |
| The Commerce Departmant has revised up its forecast for consumer spending, and business investment. | The Commerce Departmant has revised up its forecast for consumer spending, and business investment. |
| Bottom line: the US economy is picking up pace, at a time when Europe is stagnating, Japan is back in recession, China is slowing, and Russia is risking a full-blown crisis. | Bottom line: the US economy is picking up pace, at a time when Europe is stagnating, Japan is back in recession, China is slowing, and Russia is risking a full-blown crisis. |
| Details and reaction to follow... | Details and reaction to follow... |
| 1.28pm GMT | 1.28pm GMT |
| 13:28 | 13:28 |
| OK, it’s nearly time for the next data splurge – updated GDP data from the US and Canada for the last quarter.... | OK, it’s nearly time for the next data splurge – updated GDP data from the US and Canada for the last quarter.... |
| Updated | Updated |
| at 1.28pm GMT | at 1.28pm GMT |
| 1.27pm GMT | 1.27pm GMT |
| 13:27 | 13:27 |
| Sterling has hit a 16-month low agains the US dollar, as the City gives its verdict on today’s data. | Sterling has hit a 16-month low agains the US dollar, as the City gives its verdict on today’s data. |
| The pound is down almost 0.5%, or 0.7 of a cent, at $1.552, the lowest since September 2013. | The pound is down almost 0.5%, or 0.7 of a cent, at $1.552, the lowest since September 2013. |
| That’s partly because the dollar is rallying against most currencies; the euro has hit a 28-month low against the greenback. | That’s partly because the dollar is rallying against most currencies; the euro has hit a 28-month low against the greenback. |
| Updated | Updated |
| at 1.27pm GMT | at 1.27pm GMT |
| 1.12pm GMT | 1.12pm GMT |
| 13:12 | 13:12 |
| Back in the City of London, shoppers are hitting the streets as the clock ticks towards Christmas Day. | Back in the City of London, shoppers are hitting the streets as the clock ticks towards Christmas Day. |
| The Times’ Juliet Samuel spies a lengthy queue at popular scent firm Jo Malone. | The Times’ Juliet Samuel spies a lengthy queue at popular scent firm Jo Malone. |
| Panicked Christmas shoppers outside Jo Malone in the city today pic.twitter.com/bFYtzmmkFz | Panicked Christmas shoppers outside Jo Malone in the city today pic.twitter.com/bFYtzmmkFz |
| "Every year it's the same," observes a passing suit. | "Every year it's the same," observes a passing suit. |
| Updated | Updated |
| at 1.13pm GMT | at 1.13pm GMT |
| 1.02pm GMT | 1.02pm GMT |
| 13:02 | 13:02 |
| A reader has politely suggested I’m being too pessimistic about the UK’s growth figures. | A reader has politely suggested I’m being too pessimistic about the UK’s growth figures. |
| And to be fair, a 2.6% increase in GDP over the last 12 months is much better than the European average. | And to be fair, a 2.6% increase in GDP over the last 12 months is much better than the European average. |
| France, for example, has only grown by 0.4% over the last 12 months, while Germany expanded by 1.2%. And both economies are expected to under-perform the UK in 2015, when the economy is predicted to grow by another 2.4% | France, for example, has only grown by 0.4% over the last 12 months, while Germany expanded by 1.2%. And both economies are expected to under-perform the UK in 2015, when the economy is predicted to grow by another 2.4% |
| Martin Beck, senior economic advisor to the EY ITEM Club, reckons the fall in the oil price could mean faster growth next year, so it’s not all doom and gloom. | Martin Beck, senior economic advisor to the EY ITEM Club, reckons the fall in the oil price could mean faster growth next year, so it’s not all doom and gloom. |
| 12.44pm GMT | 12.44pm GMT |
| 12:44 | 12:44 |
| Heads up: We get updated US growth data in around 45 minutes. | Heads up: We get updated US growth data in around 45 minutes. |
| Economists reckon that America’s GDP could be revised higher, to show an annual growth rate of perhaps 4.3% in the last quarter, up from the previous forecast of 3.9%. | Economists reckon that America’s GDP could be revised higher, to show an annual growth rate of perhaps 4.3% in the last quarter, up from the previous forecast of 3.9%. |
| RT @WSJecon: What to watch in the U.S. GDP report that comes out at 8:30 a.m. EST: http://t.co/7kvVcGHuRX pic.twitter.com/CM7giOqAkw | RT @WSJecon: What to watch in the U.S. GDP report that comes out at 8:30 a.m. EST: http://t.co/7kvVcGHuRX pic.twitter.com/CM7giOqAkw |
| 12.14pm GMT | 12.14pm GMT |
| 12:14 | 12:14 |
| Summary: Worrying news on the UK economy | Summary: Worrying news on the UK economy |
| Britain has been dealt a double-dose of unfestive economic news this morning, showing that the recovery may be on more fragile ground than feared. | Britain has been dealt a double-dose of unfestive economic news this morning, showing that the recovery may be on more fragile ground than feared. |
| The Office for National Statistics has lowered its estimate for growth over the last 12 months to 2.6%, sharply down from 3%. | The Office for National Statistics has lowered its estimate for growth over the last 12 months to 2.6%, sharply down from 3%. |
| The ONS confirmed that the economy grew by 0.7% in July-September, down from 0.8% in Q2, and trimmed growth forecasts for the previous five quarters. | The ONS confirmed that the economy grew by 0.7% in July-September, down from 0.8% in Q2, and trimmed growth forecasts for the previous five quarters. |
| The data also confirmed that business investment contracted in the last quarter, leaving Britain worryingly reliant on consumer spending. | The data also confirmed that business investment contracted in the last quarter, leaving Britain worryingly reliant on consumer spending. |
| Reuters sums it up: | Reuters sums it up: |
| Household spending rose 0.9 percent from the April-June period, picking up speed from the second quarter, and was the main driver of growth. | Household spending rose 0.9 percent from the April-June period, picking up speed from the second quarter, and was the main driver of growth. |
| The data showed consumers dug into their savings. Household disposable income, after tax and inflation, fell 0.1 percent on the quarter and was up only 1.0 percent on the year, reflecting weak pay growth that has raised questions about the durability of the economic recovery. | The data showed consumers dug into their savings. Household disposable income, after tax and inflation, fell 0.1 percent on the quarter and was up only 1.0 percent on the year, reflecting weak pay growth that has raised questions about the durability of the economic recovery. |
| Weak earnings have also put the issue of living standards at the centre of campaigning for Britain’s national elections in May. | Weak earnings have also put the issue of living standards at the centre of campaigning for Britain’s national elections in May. |
| Business investment, which is considered crucial to ensure the economy continues to grow, fell 1.4 percent from the second quarter and was up 5.2 percent compared with a year earlier, the Office for National Statistics said. | Business investment, which is considered crucial to ensure the economy continues to grow, fell 1.4 percent from the second quarter and was up 5.2 percent compared with a year earlier, the Office for National Statistics said. |
| It probably means that the UK is no longer the fastest growing advanced economy; that crown has been passed to Australia. | It probably means that the UK is no longer the fastest growing advanced economy; that crown has been passed to Australia. |
| On an annual basis the UK is not "fastest growing of any major advanced economy in the world". Oz and US stronger: pic.twitter.com/CAGSYRyPsj | On an annual basis the UK is not "fastest growing of any major advanced economy in the world". Oz and US stronger: pic.twitter.com/CAGSYRyPsj |
| The opposition Labour party have seized on the data; shadow Treasury minister Shabana Mahmood says the chancellor has “totally failed to rebalance the economy as he promised”. | The opposition Labour party have seized on the data; shadow Treasury minister Shabana Mahmood says the chancellor has “totally failed to rebalance the economy as he promised”. |
| Economists agree that the data shows the UK is slowing down, and that economy is more unbalanced. | Economists agree that the data shows the UK is slowing down, and that economy is more unbalanced. |
| There is also concern that Britain’s current account deficit – the difference between the money that flowed into the UK, and flowed out – hit a record, at 6% of GDP. | There is also concern that Britain’s current account deficit – the difference between the money that flowed into the UK, and flowed out – hit a record, at 6% of GDP. |
| The UK's current account deficit has reached 6% of GDP - the highest ever recorded pic.twitter.com/MzEAe9k2lv via @BenChu | The UK's current account deficit has reached 6% of GDP - the highest ever recorded pic.twitter.com/MzEAe9k2lv via @BenChu |
| The British Chambers of Commerce say that such a deficit is simply unsustainable. | The British Chambers of Commerce say that such a deficit is simply unsustainable. |
| The CEBR fears that the pound could be hit: | The CEBR fears that the pound could be hit: |
| With the downward revisions to growth and a slightly less rosy outlook, financial markets may soon turn their attention to more concerning aspects of the UK economy such as the current account deficit. | With the downward revisions to growth and a slightly less rosy outlook, financial markets may soon turn their attention to more concerning aspects of the UK economy such as the current account deficit. |
| If the current account position continues to decline in the coming quarters, then a sterling sell-off may become a viable concern in the not too distant future. | If the current account position continues to decline in the coming quarters, then a sterling sell-off may become a viable concern in the not too distant future. |
| And Newsnight’s Duncan Weldon has explained how it could undermine confidence in the UK economy. | And Newsnight’s Duncan Weldon has explained how it could undermine confidence in the UK economy. |
| It’s all rather worrying. | It’s all rather worrying. |
| GDP revisions leave UK recovery looking slower & more unbalanced. Add in a large current deficit and the word 'fragile' comes to mind. | GDP revisions leave UK recovery looking slower & more unbalanced. Add in a large current deficit and the word 'fragile' comes to mind. |
| And in other news... Greek debt is weakening after MPs rejected the government’s nominee as president for the second time. | And in other news... Greek debt is weakening after MPs rejected the government’s nominee as president for the second time. |
| Stavros Dimas attracted just 168 votes, 12 shy of the 180 target in next week’s third, final, vote. | Stavros Dimas attracted just 168 votes, 12 shy of the 180 target in next week’s third, final, vote. |
| RT @WSJeurope Parliament fails to back PM’s presidential candidate in second vote http://t.co/SN0bPmuR9a pic.twitter.com/gIRvF04QkM #PtD #Greece | RT @WSJeurope Parliament fails to back PM’s presidential candidate in second vote http://t.co/SN0bPmuR9a pic.twitter.com/gIRvF04QkM #PtD #Greece |
| An early election in 2015 looks increasingly likely, raising the prospect that the left-wing Syriza party will take power - and push for a new deal on Greek debt. | An early election in 2015 looks increasingly likely, raising the prospect that the left-wing Syriza party will take power - and push for a new deal on Greek debt. |
| *SAMARAS SAYS DANGEROUS FOR COUNTRY TO GO TO EARLY ELECTIONS | *SAMARAS SAYS DANGEROUS FOR COUNTRY TO GO TO EARLY ELECTIONS |
| Updated | Updated |
| at 12.23pm GMT | at 12.23pm GMT |
| 12.13pm GMT | 12.13pm GMT |
| 12:13 | 12:13 |
| Sam Alderson, economist at the Centre for Economics and Business Research, fears that the trajectory of the current account deficit could significantly hold back economic growth prospects, especially as export prospects look weak: | Sam Alderson, economist at the Centre for Economics and Business Research, fears that the trajectory of the current account deficit could significantly hold back economic growth prospects, especially as export prospects look weak: |
| British car manufacturer Jaguar Land Rover suspended sales to Russia in recent days as the value of the Russian rouble collapsed. | British car manufacturer Jaguar Land Rover suspended sales to Russia in recent days as the value of the Russian rouble collapsed. |
| Russia is not the only economy struggling and economic weakness in other emerging markets and advanced economies such as the Eurozone and Japan looks likely to continue to hold back income from overseas investments. | Russia is not the only economy struggling and economic weakness in other emerging markets and advanced economies such as the Eurozone and Japan looks likely to continue to hold back income from overseas investments. |