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UK election result hits already struggling economy

Friday, June 09, 2017 - 01:50

Britain's economy appears to have struggled even before Friday's inconclusive election result, with data on Friday showing industrial output rose less than expected in April after falling in the previous three months. Kate King reports

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The UK economy was limping even before its inconclusive election result - Data on Friday showing industrial output rose less than expected in April after falling in the previous three months. The construction sector weaker than expected too. SOUNDBITE (English) CITY INDEX, MARKET ANALYST, KEN ODELUGA, SAYING: "The latest data is undoubtedly starting to show sounds of deterioration, so I think in months to come we double down on those, we see those kind of like widen out even more and that's negative, having said that, we started from a very strong base. " The result compounds the uncertainty of Brexit Businesses had been banking on the PM's promise of strong and stable leadership to help weather the storm. And lobby groups are now calling on the government, who ever it may be, to act quickly to relieve economic pressure. (GRAPHIC) The CBI's Director General describing it as a serious moment for the UK economy and urging politicians to reassure markets and protect the economy There's no sign yet that exporters have begun cutting their prices in order to strengthen their competitive advantage, but exports edged down in April, after rising just over 2 percent in the three months before Locally, rising inflation and stalling wage growth is also having an effect SOUNDBITE (English) CITY INDEX, MARKET ANALYST, KEN ODELUGA, SAYING: " Any sort of like an impact on consumer confidence will inevitably sort of like eventually feed through to the economic growth and could actually you know trim actually trim by a few basis points by the year end." Theresa May's confidence hit could end up positive for businesses wanting a so called 'soft' brexit that - potentially supporting Sterling in the long run. However, among the if's and but's it's clear - British business isn't prepared to sit around and wait for the cloud to lift.

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UK election result hits already struggling economy

Friday, June 09, 2017 - 01:50