- Andrew Graham, the chief executive of wallpaper manufacturer Graham & Brown
As it was promised by the central bank, the U.K. economy accelerated further in May, recovering from a temporary slump caused by the weather. We have received the confirmation for Carney's words from two major business lobby groups, the CBI and the British Chambers of Commerce, both saying the economy is in good health. According to the CBI, the economy has already reached its record high in May, marking the best reading since records began in 2003. Simultaneously, the BBC has revised its growth outlook for this year, saying the economy will post a 3.1% in 2004, from 2.8% expected earlier. In case the level is achieved, it will be the fastest pace since pre-crisis in 2007. Additionally, the forecast is even more optimistic than the one expressed by the government's watchdog, the Office for Budget Responsibility. They expect a growth around 2.7% for this year.
Despite the fact the economy was not able to surprise markets to the upside in the first quarter, as the growth was confirmed at 0.8%, economists are seeing the broadening recovery, saying activity in all sectors strengthened. While manufacturing is slightly lagging behind, retail sales and professional and consumer services posted solid gains. Keeping it all in mind, this week's manufacturing, construction and services PMI all have a potential to surprise markets to the upside, pushing the Sterling higher.
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