Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, comments: “The UK economy remains essentially flat with UK GDP at the same level as a year ago despite a strong boost from the Olympics and other one off factors.

“The clear winner since the financial crisis is the US where economic activity is well above its 2007 level and on a steadily rising path and where the housing market is beginning to show signs of life.

“Both countries engaged in aggressive quantitative easing. The big difference with the US is on the fiscal side where neither political party is expected to cut government spending significantly until the economic recovery is well established."