The Bank of England is set to increase UK growth forecasts in Thursday’s monetary policy report, according to new reports in the Daily Mail.
The Bank had previously predicted a 5% growth rate in 2021 but the UK is currently on track to roar out of lockdown at a much faster speed, according to a range of experts with their fingers on the economic pulse.
Goldman Sachs last week said that the UK was due to grow by a whopping 7.8% this year, adding that their forecast for Brexit Britain comes in “above our expectations for the U.S.”
“The UK economy is rebounding sharply from the Covid crisis” said the investment banking giant. “The April flash PMI was much stronger than expected in the UK, with the services PMI moving strongly further into expansionary territory.”
Howard Archer of the EY Item Club said that Britain’s economy “looks to have started the second quarter very much on the front foot, benefiting from easing of restrictions and the continued vaccine rollout”, adding that the March budget has “lifted confidence” and the labour market is “showing resilience”.
This site reported last month on Project Fear-busting survey evidence that UK manufacturing is smashing expectations too, with the CBI’s Industrial Trends Survey revealing that optimism is on the rise and plans to invest in plants and machinery are at their highest since July 1997.
We’ve also highlighted a major Deloitte survey showing that chief financial officers are more optimistic about the future of the economy now than they have been in the last thirteen years.
And research from professional services giant PwC has shown that global business leaders already think the UK is a more attractive place to do business after Brexit, with a growing number saying the UK is a top target for growth.
All of that new data could force a change in the Bank of England’s outlook, as the UK continues to open up following a stunningly successful vaccine roll-out and the easing of onerous lockdown rules.