In the United Kingdom, the local economic system has returned to a growth trajectory, which put UK Prime Minister Keir Starmer on track for a modest recovery before worries about his first budget became a factor of pressure on sentiment.
The data, which was published by the Office for National Statistics, indicates that in August, the mentioned country’s gross domestic product (GDP) showed an increase of 0.2% relative to the figure recorded in July. It is worth noting that this result corresponds to the preliminary expectations of economists who were interviewed by the media.
In the United Kingdom, services, production, and construction all expanded in the month.
As noted by the media, data on the dynamic GDP indicate that the UK economy will continue to grow in the third quarter of the current year, although the pace of the corresponding process will slow down compared to the level of intensity that was observed in the first half of 2024.
The prevailing view among analysts is that the United Kingdom’s economy will expand. At the same time, the corresponding scenario may not materialize if the September GDP indicator in this country shows a drop of 0.3% or more.
It is worth noting that the sentiment in the United Kingdom has deteriorated recently in the context of assessing the economic prospects. In this case, the main impact factor was the UK government’s bleak warnings about the state of public finance. A survey by the Institute of Directors indicates that consumer confidence fell at the fastest pace since late February-early March 2022.
Luke Bartholomew, the deputy chief economist at Abrdn, said that the latest report on the United Kingdom’s GDP shows that the UK economy grew solidly, at least in August. At the same time, according to the expert, these data seem somewhat stale against the background of the deterioration in business and consumer confidence.
As we have reported earlier, US Inflation Rate Tops Expectations.
