Last week’s data releases provided more encouragement that the economic recovery has a fair amount of momentum at the end of 2014. Indeed, barring any last-minute shocks, the UK economy appears to have been the fastest growing G7 economy in 2014, with GDP rising by a robust 3%.
Can the recovery sustain this pace in 2015? We think it stands a good chance. With employment intentions strong, pay growth on an improving trend and the cost of essentials set to fall further, 2015 should see some punchy growth in consumer spending. And the health of corporate balance sheets and low level of interest rates suggests we could see another year of strong investment.
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