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

Experts Warn Net Zero Transition to Be Costlier...

February 21, 2024

Rachel Reeves unveils £15bn regional transport investment to...

June 4, 2025

The priciest place to rent a desk in...

September 21, 2022

Lidl celebrates record festive sales with 7% Christmas...

January 2, 2025

Gas boiler fittings outnumbered heat pumps by 15...

April 10, 2025

Getting to Know You: Brad Walker, founder of...

August 13, 2024

Workplace discrimination at alarming levels as nearly half...

February 28, 2025

UK inflation surges to 3.5% in April as...

May 21, 2025

TikTok’s latest GDPR breach could cost them up...

September 13, 2023

Record Surge in UK Business Start-ups Signals Resilience...

February 12, 2024

    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

    • Why AI and green tech are vital to SME growth in 2025

      June 10, 2025
    • Yes, it’s great to get PR coverage – until it’s locked behind a bloody paywall

      June 10, 2025
    • We have to act now to keep AI from becoming a far-left Trojan Horse

      June 10, 2025
    • SME lending delays slashed by 80% thanks to fintech-driven back-office reform

      June 10, 2025
    • UK defence innovation strategy opens new doors for SMEs in AI and autonomous tech

      June 10, 2025
    • Shark Tank study shows charming narcissists get funding

      June 10, 2025

    Categories

    • Business (8,172)
    • Investing (2,021)
    • Politics (15,580)
    • Stocks (3,138)
    • 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