abrdn: Economic recovery in the UK continues

abrdn: Economic recovery in the UK continues

July 11, 2024

Outlook UK
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Luke Bartholomew, Deputy Chief Economist at abrdn, comments on the GPD Monthly Estimate for May published today in the UK.

'While it is important to stress that the monthly GDP series is very volatile, the strength of today’s report is consistent with the broader evidence of the UK continuing its solid recovery from a long period of stagnation. With the Bank of England’s chief economist Huw Pill sounding somewhat cautious about the outlook for inflation, the fact that the economy now looks set to grow faster than the Bank’s forecasts may also make investors slightly more nervous about the prospect for an August rate cut. However, as long as the inflation data cooperate, we continue to expect the first cut next month.'

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