The latest issue of the Blackfinch Spring VCT PLC advisory update provides a comprehensive overview of the economic landscape in the UK, North America, and Europe. In the UK, the Bank of England's Monetary Policy Committee voted to maintain interest rates at 5.25%, resisting pressures to cut rates. The UK emerged from a shallow recession in the first quarter of the year, with GDP expanding by 0.6%, indicating an end to the "living squeeze." However, the construction sector faced challenges, with output falling by 0.9%, putting it in a technical recession.
In North America, the US labor market showed signs of weakening as initial jobless benefit claims rose to the highest level since August 2023. The US Treasury reported a surplus of $209.5 billion in April, reflecting a stronger tax haul. However, the University of Michigan Consumer Sentiment Index recorded a significant fall, indicating softening in the US economy. Consumer credit growth also slowed in March, with a rise much lower than expected.
In Europe, German factory orders declined by 0.4% in March, contrary to economist forecasts, while exports picked up by 0.9%, outpacing imports. These developments confirm the return of the export-driven German growth model.
The advisory update also offers additional market update options, including live webinars presented by the investment team, to provide an exceptional advisory experience for clients. This comprehensive overview equips advisors with the latest economic insights to engage in informed conversations with their clients.