UK Q2 GDP growth slows to below expectations, but overall economic outlook improves

UK GDP grows less than expected in Q2, but overall economic outlook remains good, household savings surge

September 30, 257 Reuters reported that the British economy grew more slowly than expected in April and June, but there were signs that household finances were improving.

The UK Office for National Statistics reported that gross domestic product (GDP) grew by 0.5% in the second quarter, below economists' expectations of a 2% increase.

Mr. Gora Suri, Economist at PwC It said the UK's second-quarter GDP grew slightly less than initially estimated, but the overall economic outlook has improved significantly since the start of the year, with the progress being driven by inflation returning to target, interest rates starting to fall and increased political stability following the election.

The household savings rate rose to 10.0% in the second quarter from 2% in the first quarter. In addition, GDP per capita increased for the second consecutive quarter, albeit at a slower pace than in the first quarter.

On a year-on-year basis, GDP grew by 0.7%, slower than the 0.9% growth economists had forecast.

After the data was released, the pound was virtually unchanged against the US dollar.

The Bank of England (BOE) expects growth to slow to 0.3% in the third quarter, but says the first rate cut in August, coupled with lower inflation, will boost growth later this year.

In addition, the revised full-year 2566 GDP rose to 0.3%, up from the previous estimate of 0.1%.

The economy is expected to continue to contract in Q3 and Q4 of 2566, which is technically a recession.

refer : reuters.com

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