GDP figures show the UK economy grew by 0.2% in second quarter of 2023, Rob Morgan, Chief Investment Analysis at Charles Stanley, has commented on the subject, which can be seen below:
Rob Morgan, Chief Investment Analyst at Charles Stanley said: “Having eked out 0.1% growth in the first quarter of this year, today’s second quarter UK GDP numbers showed an improvement on the previous two quarters. June was particularly buoyant, reflecting a rebound from a May peppered with bank holidays.
“Although the UK economy didn’t exactly smash forecasts of a flat period, it is sufficiently robust enough to give the Bank of England MPC plenty of food for thought at its next meeting to decide interest rates on 21st September. Their judgement will be a difficult one with inflation pressures lingering and the UK economy so far largely withstanding the strain of higher rates.
“Economic activity has held up pretty well with a softening in raw materials prices helping spur demand. However, GDP is a lagging indicator and this could be as good as it gets for a while as some key tailwinds fade. Consumer spending has been helped along by lower fuel prices alongside low unemployment levels and wage growth above 7%. With much of the drag from higher interest rates yet to be felt there is still a risk the economy could tip into recession in the second half of this year.”
