Midday Markets: Is the UK economy ‘back’?
The Midday Market report is a new newsletter from City AM, giving you fresh analysis on the biggest stories in the City straight into your inbox every lunchtime. Today, Ali Lyon, assesses whether August’s positive GDP figures are a sign of a revival in the UK economy. Sign up to the City AM News Updates [...]
City AM's Midday Market report explores whether August's positive GDP figures signal a revival in the UK economy. After years of being described as languid, stuttering, moribund, or anaemic, the report highlights a 0.1% GDP growth in August, unexpected given the many headwinds faced by the economy. Analysts are optimistic based on factors such as improved productivity, early signs of a tech boom, and an uptick in manufacturing, despite high taxes, higher energy prices, higher mortgage rates, and a weak labor market.
Consumer and services spending, as well as the positive trend in August's figures, have defied expectations. Over a three-month comparison, Britain's economy has grown by 0.7% and 2.1% in the past year, the best full year since around 2017. However, there is concern about the impact of rising inflation and slowing wage growth on people's real income growth.
Even with the Bank of England considering raising interest rates and energy prices expected to increase, the resilience of the UK economy remains commendable.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
