Trade Drives U.K. Economy as Pressures on Consumers Build
- Current-account deficit shows biggest improvement on record
- Net trade may struggle to offset slowdown in consumer spending
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The falling pound delivered a double boost for the U.K. economy in the final three months of 2016 but signs of the pressure on consumers from inflation began to emerge.
A bumper contribution from trade saw gross domestic product grow an unrevised 0.7 percent, its fastest pace in a year. In the same period, the current-account deficit recorded a record improvement, narrowing sharply to 2.4 percent of GDP, the least since 2011.