Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK Economy Shows Modest Growth Momentum with Second Consecutive Monthly GDP Increase

by April 12, 2024
April 12, 2024
UK Economy Shows Modest Growth Momentum with Second Consecutive Monthly GDP Increase

The UK economy exhibited signs of recovery as Gross Domestic Product (GDP) rose by 0.1 per cent in February, propelled by improved performance in both the production and services sectors.

According to the Office for National Statistics (ONS), GDP has now expanded for two consecutive months, following an upwardly revised 0.3 per cent growth in January. This positive trend suggests that the UK is gradually emerging from the recession it experienced in the latter half of the previous year, although the pace of recovery remains modest.

The services sector saw a 0.1 per cent increase in activity, while the production sector experienced a more notable growth of 1.1 per cent. However, the construction sector witnessed a contraction of 1.9 per cent, tempering overall growth for February. Over the three months leading up to February, GDP saw a 0.2 per cent increase.

Anticipation of interest rate cuts by the Bank of England in the near future, coupled with easing inflationary pressures, has stimulated demand within the UK economy. Inflation dropped to 3.4 per cent in February, exceeding expectations, while interest rates persist at a 16-year high of 5.25 per cent.

Jeremy Hunt’s tax cuts, implemented in April following the March budget, are expected to further stimulate demand. Additionally, forecasts predict a decline in inflation in the coming months, driven by reductions in average energy bills.

Liz McKeown, ONS’s director of economic statistics, highlighted the positive growth across manufacturing, particularly in the automotive sector, and in services such as public transport and telecommunications. However, she noted significant declines in construction due to adverse weather conditions.

Chancellor Jeremy Hunt expressed optimism about the economic progress reflected in the latest figures, emphasizing the importance of adhering to the government’s plan for sustained growth.

Despite these positive indicators, the UK’s growth trajectory remains modest compared to previous decades, influenced by factors such as high borrowing costs and lingering effects of the cost of living crisis. GDP is projected to grow by approximately 0.6 per cent this year, positioning the UK among the weakest performers in the G7.

Investor expectations for interest rate cuts by the Bank of England have moderated, reflecting concerns about inflation challenges in developed countries. Initial forecasts for six cuts have been revised down to around two, underscoring the complexity of returning inflation to the targeted 2 per cent level.

Read more:
UK Economy Shows Modest Growth Momentum with Second Consecutive Monthly GDP Increase

0
FacebookTwitterGoogle +Pinterest
previous post
AI Skills Gap putting Public Sector projects in jeopardy, according to new research
next post
WhatsApp Faces Backlash Over Decision to Lower Minimum Age Limit

You may also like

The five frauds to watch out for next...

December 27, 2022

Top female angels invest £4.5m to turbocharge opportunities...

November 3, 2022

House prices climb 11% despite cost of living...

August 2, 2022

Payment provider Stripe predicts a challenging period ahead...

April 6, 2023

How can construction site managers ensure crew safety?

December 4, 2024

Heathrow welcomes record passengers as third runway plans...

February 26, 2025

Heston Blumenthal calls for greater urgency in tackling...

February 14, 2024

State pension set to rise by £400 amid...

September 5, 2024

Fostering Innovation and Team Collaboration: Strategies from Scott...

September 26, 2024

Why it is important to use sustainable materials...

February 22, 2023

The five frauds to watch out for next...

December 27, 2022

Top female angels invest £4.5m to turbocharge opportunities...

November 3, 2022

House prices climb 11% despite cost of living...

August 2, 2022

Payment provider Stripe predicts a challenging period ahead...

April 6, 2023

How can construction site managers ensure crew safety?

December 4, 2024

Heathrow welcomes record passengers as third runway plans...

February 26, 2025

Heston Blumenthal calls for greater urgency in tackling...

February 14, 2024

State pension set to rise by £400 amid...

September 5, 2024

Fostering Innovation and Team Collaboration: Strategies from Scott...

September 26, 2024

Why it is important to use sustainable materials...

February 22, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump endorses House freshman for reelection less than six months into the lawmaker’s congressional tenure

      June 16, 2025
    • I know why the UN Security Council is irrelevant to Gaza. I was there when the US stood up for Israel

      June 16, 2025
    • US needs a new Monroe Doctrine — this time to guarantee AI dominance

      June 16, 2025
    • Retail giants ‘face £600m bill’ as new business rates bite

      June 16, 2025
    • Ivy owner apologises for demanding discounts from suppliers

      June 16, 2025
    • British manufacturers turn their backs on US as export market amid Trump-era trade turmoil

      June 16, 2025

    Categories

    • Business (8,217)
    • Investing (2,035)
    • Politics (15,660)
    • Stocks (3,149)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved