UK economic growth strong, could see soft landing

According to the Golden Ten report, Capital Economics analyst Ashley Webb pointed out in a report that British private sector activity unexpectedly increased this month, showing strong economic growth momentum. A soft landing for the UK economy is increasingly likely as price inflation eases. The recently released PMI survey showed that economic activity accelerated from the previous month, with both the service industry and manufacturing performing strongly. Webb said the rise suggested the UK economy was accelerating more broadly at the start of the second quarter and that the economy was continuing to recover from what was likely to be a brief recession last year. With price pressures remaining benign, the Bank of England should feel more comfortable cutting interest rates in the coming months - perhaps in June.