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

HS2 hold-ups put 2,000 jobs at risk as...

September 12, 2023

Boost your getting a better Perch Mortgage with...

December 27, 2022

Microsoft Taps DeepMind Co-Founder to Lead New AI...

March 21, 2024

Tesco to Revamp Clubcard Branding Following Loss to...

March 19, 2024

Alternative investment platform TheCarCrowd target global expansion after...

May 13, 2024

Is Your Business Financially Healthy? 5 Key Indicators...

July 23, 2024

Change the Race Ratio finalises plans for independence...

August 21, 2023

April Retail Sales Plummet Due to Severe Weather...

May 24, 2024

Downing Street ponders creating ‘AI Safety Institute’

October 10, 2023

UK considers banning bitcoin purchases on credit cards...

May 2, 2025

    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 warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • 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