UK: British upswing running out of steam

- "British GDP has advanced for three consecutive quarters after plummeting in 2008-09. However, OECD's leading indicator for UK has fallen in the past two months, indicating that the economic upswing is losing steam."
- "Perception of the overall economic situation is also worsening. The output gap has not been closed and spare capacity remains."
- "Retail sales are getting weaker, trend in disposable income is declining. Consumer sentiment is
deteriorating, business confidence is fading."
- "We expect only a slow recovery, the robust Q2 numbers were a one-off affair. Exports, private consumption and investments remain well below trend. In our view, economic growth will undershoot government projections."

DenDanske UK Outlook 20100806

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