BREWIN Dolphin specialises in helping clients tackle issues and make the most of opportunities to protect and grow their wealth, and sometimes in this column we veer away from the cold, hard economic data in order to discuss ways in which we can ‘enrich lives’ through providing personalised wealth management services.

Not this week though.

This week, we’re talking stats and more stats, with an overview of what’s going on in the economy.

First up, a worrying picture was painted in the news following the election, with a survey of 700 members of the Institute of Directors (IoD) finding 57 per cent of respondents were quite or very pessimistic about the economy over the next year, with just 20 per cent optimistic.

The results were significantly worse than in May’s survey (the month, not the Prime Minister), when 37 per cent of respondents were pessimistic and 34 per cent were optimistic.

The Office for National Statistics (ONS) has reported a further rise in consumer inflation (CPI) to 2.9 per cent.

The headline CPI rate is now expected to top three per cent later this year.

The rise was attributed partly to steep increases in the cost of package holidays, as well as computer games and equipment - which are usually imported.

However, producer input inflation declined from 15.6 per cent in April to 11.6 per cent in May, with output price inflation steady at 3.6 per cent.

Think tank Capital Economics said: “This supports our view that the drop in the pound has fed through faster than expected - rather than by a larger amount.

"As a result we think CPI will peak at just above three per cent this year…and is likely to drop back fairly quickly in 2018.”

The ONS also reported that the real value of wages, taking into account inflation, is falling at the fastest pace in three years.

Annual pay growth before inflation was just 2.1 per cent in the three months to April compared to a year earlier.

Excluding bonuses the figure was even lower at 1.7 per cent. Economists fear the squeeze on household incomes will hit consumer spending.

Retail sales were down by more than expected in May, according to more ONS data.

Sales, excluding fuel, fell 1.6 per cent last month after a 2.2 per cent rise in April. Including fuel, the monthly decline was 1.2 per cent. Year-on-year, sales were up 0.9 per cent, the weakest growth in four years.

Meanwhile, interest rates in the US were increased by 0.25 per cent to a range of one per cent to 1.25 per cent, and the Bank of England’s Monetary Policy Committee, in a surprisingly close vote of five to three, kept UK rates unchanged at 0.25 per cent. The three dissenters wanted an immediate rate rise to counter surging inflation.

House prices dipped by 0.2 per cent in the three months to May, according to the Halifax house price index, adding to the growing array of evidence that the property market is slowing down.

Research by the Royal Institution of Chartered Surveyors found buyer enquires at an 11-month low, with new sales instructions at one of the lowest levels ever for its monthly survey.

UK economic performance will slow next year as Brexit concerns take their toll on growth and confidence, the Organisation for Economic Co-operation and Development (OECD) predicted.

While the OECD revised up its forecast for UK economic growth this year to 1.6 per cent, it predicts just one per cent growth in 2018. It now expects Italy will be the only G7 economy to perform worse than the UK next year.

UK industrial output was also weaker than expected in April, according to official data. Although output increased for the first time in four months, total industrial production grew by only 0.2 per cent over the month.

Meanwhile, following the General Election, Carolyn Fairbairn, director-general of the Confederation of British Industry, said businesses “will be pretty stunned” by the outcome.

She said “the main concern in the short run will be the uncertainty”, adding firms “will be looking to the Government to create a functioning administration quickly”.

Neil McLoram works in business development at wealth management firm Brewin Dolphin, based in Newcastle.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The information contained in the Brewin Dolphin Family Wealth Report is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.