From 4 hours ago, key events have unfolded in the UK economy, with the country exiting its third recession in 16 years. The odds of an interest rate cut in June have narrowed, according to recent reports. Moody’s Analytics predicts that interest rates will constrain growth this year, while the FTSE 100 hits 8,400 points amid GDP relief.
The UK has been identified as the joint-fastest growing G7 country in the last quarter, signaling the end of the living standards recession as GDP per head grows. However, the TUC warns that one quarter of decent growth won’t make up for 14 years of lost living standards. Experts have varying opinions on the recession being over, with Rachel Reeves noting the transition from no growth to low growth.
Despite some positive indicators, the UK construction sector remains weak, although the economy is said to be returning to full health. The Office for National Statistics reports broad-based services growth in the last quarter, with the UK economy growing by 0.4% in March. The recent growth marks a return to growth for the UK economy, but concerns remain about the accuracy of GDP measurements.
The UK economy is entering a period of stronger growth, with initial GDP figures showing a 0.6% expansion in the first quarter. While caution is advised due to data volatility, other economic indicators support the trend of stronger growth. The Resolution Foundation highlights the frequency of recessions in the UK as a concern, despite the recent positive growth.