The contraction in output in the first quarter was just a blip. The available activity data suggest that the economy returned to growth in the second quarter. But growth won’t be as strong this year as it was last. Unemployment is about as low as it is ever likely to get, overtime working hours are close to record highs and capacity usage is the highest it has been in decades. With spare capacity exhausted, a return to last year’s above-trend rate of expansion is not on the cards.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services