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UK advisers positive on economic recovery
30 August 2013
State Street finds low interest rates are vital factor for continued growth
Research by State Street's exchange traded fund (ETF) platform, Spdr, has found an overwhelmingly positive view of the UK economy among advisers.
The firm found over two thirds (69.7%) of IFAs had a positive sentiment for the UK, with more than three quarters (77.6%) saying they expected the UK to grow steadily over the next three to five years.
Low interest rates were tipped as a ‘very important’ factor for continuing growth by about half (50.6%) of respondents, while over a third (39%) said business confidence was vital to the economy.
The firm also reported that 40% were planning to increase allocations to UK securities over the next six months, with ETFs proving popular with over a quarter (29%).
Eleanor Hope-Bell, head of UK Sprdr ETFs, commented: “In recent weeks, there has been positive news on the UK economy including growth in GDP, increasing business and consumer confidence and improving employment figures.
Given this, plus the fact that investors are feeling increasingly positive towards UK PLC, we are not surprised we have seen inflows into our UK focused ETFs.”
Spdr also found that only 2.4% of those surveyed had a negative view of the UK economy, with a similar number (2.5%) planning to cut allocations to the UK over the next six months. Even fewer (1.2%) expected the UK economy to deteriorate over the next three to five years.