Latest growth figures likely to be strong

The UK’s position as the fastest growing major economy in the West will be further cemented this week when first quarter growth figures are revised.

Electrical goods retailer Dixons and mobile phone group Carphone Warehouse agreed in May to merge. Picture: Getty

Economists have said the figure is almost certain to be nudged up from an already strong 0.8 per cent expansion because of new evidence showing the construction sector built more than previously thought.

Meanwhile, the renewables sector should get a boost as the Edinburgh-based Green Investment Bank bolsters its balance sheet with a new fund. Backed by British and overseas investors, the additional facility will give the bank greater scope for supporting growth in the sector.

WEEK AHEAD

Today

• Eurozone PMIs – “Flash” surveys of the economy in the major eurozone countries are likely to show the recovery continues, albeit at a sluggish pace. All eyes will be on France, which is now lagging its currency zone partners.

Tomorrow

• Carpetright – Executive chairman Lord Harris of Peckham will present his last set of annual results at the retailer he founded 25 years ago. He leaves on a sour note, as the firm has warned repeatedly over profits, which are likely to have halved.

• Midsummer Retail Survey – Property firm Colliers International presents its survey of the Scottish retail sector at Edinburgh’s Merchants’ Hall.

• Green Investment Bank – The bank publishes its annual results and is expected to unveil a fund that will boost its lending power by up to £500 million.

Wednesday

• Stagecoach – Analysts at Investec expect the Perth-based firm to post pre-tax profits of £180.1m, up from £171.6m a year ago.

• Royal Bank of Scotland – Small investors will get their chance to question the board at the bank’s annual meeting, held at its Gogarburn offices.

Thursday

• Dixons Retail – The Currys and PC World owner said that it expects to post underlying pre-tax profits at the top end of market expectations of £150m to £160m for its last financial year.

• Carphone Warehouse – Dixons’ soon-to-be merger partner also posts annual results, which are likely to show earnings hit £150m.

• Financial Stability Report – Bank of England governor Mark Carney has made clear his concerns over the housing market and may unveil measures to cool it in the report. Minutes of the financial policy committee are also due.

Friday

• Hornby – The iconic toy firm’s previously-reported supply chain and foreign exchange difficulties are set to hit the business when it reports its full-year results, with the City hoping for little better than break-even.

• GDP – The third reading of Britain’s first-quarter output is likely to see growth revised up a notch as progress in the construction sector was previously under-estimated.

• Balance of payments – Amid all the good news from the UK economy, the current account figures have stubbornly refused to show improvement so far.