The UK economy grew in line with expectations in the second quarter of 2024, contuining to bounce back from a shallow recession.
Britain’s gross domestic product (GDP) grew 0.6 per cent in the three months to June compared to the previous quarter, according to data from the Office for National Statistics (ONS).
The figure matched the growth forecast by economists. However, on a monthly basis, the economy showed no growth in June, in line with expectations but posing new challenges for Bank of England policymakers as they decide whether to cut interest rates again.
Analysts had said the start of the European football championships in June likely boosted the key services sector through more spending in pubs, while some highlighted the significance of potentially higher occupancy rates in hotels as Taylor Swift’s Eras tour arrived in the UK.
Thursday’s data is among a raft of economic figures released this week that will influence how confident Bank of England policymakers feel about potentially cutting interest rates in September – after lowering borrowing costs for the first time since March 2020 earlier this month.
ONS numbers published on Wednesday showed inflation moved way from the Bank’s two per cent target to hit 2.2 per cent in July – the first increase this year but below economists’ expectations of 2.3 per cent.
On Tuesday, data showed unemployment fell unexpectedly in the three months to June while a slowdown in wage growth to its lowest level in more than two years added to signs that the jobs market is cooling.
More to follow