Susannah Streeter, chief investment strategist at Wealth Club, said: “The latest assessment of UK economic health also provides some reassurance that the economy is still eking out growth.
“The pound has risen a little but is still languishing around $1.32, sharply down from this year’s highs back in January of around $1.38.
“The snapshot shows the economy is hardly firing on all cylinders. While first-quarter growth held steady at 0.6 per cent, the downward revision to annual growth to 0.9 per cent is a reminder that the recovery remains fragile.
“Encouragingly, business investment and exports were revised higher, suggesting companies are still prepared to commit capital despite high levels of unpredictability on the global and domestic scene.
“However, the economy continues to rely heavily on consumer and government spending to fuel growth. If Andy Burnham does get the keys to Number 10, he’ll face a supremely tricky balancing act.
“While his vision outlined yesterday to power up growth in the regions may resonate politically, it was light on detail about how productivity, private investment and skills shortages would be tackled in practice.
“Investors will be looking for a clearer roadmap showing how growth can be boosted sustainably without unsettling bond markets or putting further strain on already stretched public finances.”
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