Expansion continued in the second quarter, but possibly at a somewhat slower pace: the true rate of growth is, however, difficult to assess. The adjustment of stocks no longer provided, as earlier in the expansion, a strong stimulus to growth.
Though world industrial activity now seems to have slowed down to a more sustainable pace, the volume of world trade is still likely to rise strongly this year and next. In spite of a recent set-back, the prospects for UK exports thus remain favourable, and an upturn in productive investment throughout 1977 now seems more likely with signs of greater business confidence and some improvement - although from a low base - in profitability.
Published on
01 September 1976
Economic commentary