Overall, most analysts expect gross domestic product in Britain to come in around 2.7 to 2.8 percent in 2005, which would be a decline from 3.1 percent growth in 2004.
The most recent UK industrial production data available revealed a weaker-than-expected 0.4 percent decline in February. Analysts say a 0.5- percent drop in manufacturing production was the main driver of the unexpected weakness. Also, UK labor market data released in February revealed additional economic contraction: Employment rose by 148,000 in the three months to February. Looking at the inflation numbers, UK PPI input prices gained 1.8 percent month-over month in March, following a 0.1 percent increase in February.
Looking ahead, traders will need to watch if industrial production figures and consumer spending data begin to soften in the wake of higher oil prices.
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