UK equity outlook: Broadly positive despite inflation and supply chain concerns

Attractive valuations

Analysts are broadly positive on the outlook for UK equities for 2022 despite inflation and supply chain risks continuing to persist into the new year.

Andrew Bell, CEO of Witan Investment Trust said that he expects 2022 will be "third time lucky" for the UK economy, after the pandemic stymied growth in 2020 and supply chain issues plagued 2021. He said that as "vaccines and treatments mean that Covid moves off the front pages," UK equities will see a strong year, even as he remains wary of future supply chain issues. The FTSE All-Share index returned 18.3% in 2021, according to figures from FE Fundinfo, despite faltering at the start of the year as the winter lockdwon persisted longer than expected. Alan Dobbie, co-manager of the Ra...