14-Oct-2010 8:49 AM

UK economic expansion losing momentum: The Conference Board

UK's Leading Economic Index (LEI) increased (13-Oct-2010) 0.1% in Aug-2010 to 103.2 (2004=100), following gains of 0.2% in Jul-2010 and 0.5% in Jun-2010, according to The Conference Board. Four of the seven components made positive contributions to the index in the month. The LEI for the UK has been rising since Apr-2009, though its six-month growth rate has continued to slow. At the same time, The Conference Board Coincident Economic Index (CEI) for the UK, a measure of current economic activity, remained unchanged in Aug-2010, after increasing by 0.3% in both Jul-2010 and Jun-2010.  The index now stands at 103.1 (2004 = 100). [more]

The Conference Board: “The continuing deceleration of the LEI for the United Kingdom suggests a loss of momentum in the economic expansion in the near term. Shaky consumer confidence combined with an unsustainably low savings rate show little upside potential for consumption growth in the medium term. If the deficit reduction measures fail to regain confidence among non-financial firms, the outlook will be for low and volatile growth in 2011,” Jean-Claude Manini, Senior Economist for Europe. Source: Company Statement, 13-Oct-2010.