The latest estimate from the National Institute of Economic and Social Research (NIESR) suggests that the growth rate of the UK economy slowed slightly in the three months ending in August to 0.7% after 0.8% in the quarter ending in July.
The NIESR expects to see a further slight deceleration in the rest of this year as recent interest rates start to bite. However, at present there is no reason to expect any significant impact on the economy arising from the problems that credit markets are facing.
It adds that recent developments confirm its earlier view that there is no need for further interest rate increases, with this view now becoming the market consensus.
A recent forecast from OPera Media says that the global economy remains on track for continued strong expansion in 2007 and 2008, with the UK economy expected to continue growing on, or near, its 2.5% long run trend in 2007 and 2008 (see Global Economy Remains On Track For Continued Expansion).
Meanwhile, GroupM’s latest global ad forecast said that advertising is easily keeping pace with robust growth in the global economy, despite negative news this year of debt fatigue, persistent inflation and tighter money (see Advertising Keeping Pace With Global Economy).
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