SLOW GROWTH FOR UK PRIVATE SPENDING.

(From Market - Europe)

The outlook for commercial growth in the UK looks good, but not spectacular. Retail sales dipped during the first half of 2003 before rebounding in the third quarter

GDP grew 2 percent in 2003, easily outpacing growth in the eurozone of approximately 0.4 percent. UK consumer confidence slipped less than in the rest of the Eurozone, even though unemployment rose to about 5 percent. However, it never approached the level of nearly 9 percent that has prevailed in the eurozone in recent months

Through the first half of 2004, the strongest gains will be noted in the food sector, with large supermarket chains being the main benefactors. Year-on-year growth in food sales should peak at over 5 percent, with imported products faring a bit better

The roughly 16 percent increase in the value of the national currency (the British pound) relative to the U.S. dollar has given a cost competitive edge to products and services from North America and nations of the world with currencies linked to the dollar. Continued strength of the pound will contribute to year-on-year growth in the value of consumer goods imports in excess of 5 percent through most of this year

Growth in sales of British goods and services are on the rise both at home and abroad. As 2004 progresses, rising sales of intermediate and finished goods will eat into spare capacity. That, in turn, will boost expenditure on plant ...