UK: Loss of economic momentum - BBH

Analysts at BBH suggest that the UK has lost some economic momentum as after expanding by 0.4% in Q4 17, the UK economy slowed, and the risk may be on the downside of the median 0.3% forecast for Q1 18 GDP.   

Key Quotes

“The government's strategy to leave the EU at the end of next March is arguably facing its largest challenge.  The House of Lords amendment to the Withdrawal Bill called for remaining in the customs union.  Although the action can be blocked by House of Commons, the upper house action appears to have emboldened the pro-EU forces.”

“It is not clear yet how this plays out, or the impact on and from next month's local elections, but it is important and may shape the investment climate going forward.  In addition to greater continuity, remaining in the customs union would resolve the seemingly intractable problem of the Irish border.”