"I think it's becoming less compelling for the BOE to do more quantitative easing"
- Alan Clarke, an economist at Scotiabank Europe Plc
British economy shrank lass than initially estimated, while nation's trade deficit widened more than expected in the April-to-June period, the U.K.'s Office for National Statistics reported on Thursday. The U.K. GDP fell by 0.4%, up from -0.5% in the first quarter, and better than initial expectations for a 0.5% decline. Current account deficit widened to GBP20.8 billion in the second quarter, compared to a deficit of GBP15.4 billion in the preceding quarter.
"I think it's becoming less compelling for the BOE to do more quantitative easing," said Alan Clarke, an economist at Scotiabank Europe Plc in London." Real incomes have become a lot less negative than they were because inflation has dived and employment has been stonkingly good."
"It's almost impossible to see an economy in recession yet creating the amount of jobs in the private sector that we've seen over the last 12 months," said Credit Suisse economist Neville Hill.
The FTSE 100 Index advanced 0.35 per cent to 5,799.71. The broader FTSE All-Share Index climbed 0.40 per cent to 3,027.88.
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