UK economic growth May 2024

City of London skyline on June 10, 2024 in London, United Kingdom. The City of London is a city, ceremonial district and local government district that contains the main central business district CBD of London. The City of London is colloquially known as the Square Mile.

Mike Kemp | In picture | Getty Images

LONDON — Britain's economy grew by 0.4 percent in May, flash figures released by the Office for National Statistics showed on Thursday. The announcement sent the British pound to its highest level in four months against the U.S. dollar.

Gross domestic product exceeded the 0.2% monthly growth forecast by Reuters in a poll of economists.

The British economy emerged from a mild recession in the first quarter of the year, but the recession plateaued in April.

The country's key service sector posted sustained growth of 0.3% in May, as manufacturing and construction recovered from losses to rise 0.2% and 1.9% respectively.

Sterling was up 0.14% against the US dollar, at $1.2863 at 8:30 a.m. in London – the highest level for the British currency since March 8, 2024, according to data from LSEG.

The broad recovery will be welcomed by the newly elected Labour Party as Prime Minister Keir Starmer begins his first week in office.

Goldman Sachs last week raised its growth forecast for the UK after the landslide victory of left-of-centre Labour in the country's general election. The party campaigned on a platform focused on boosting economic growth, housing and planning.

The party's large parliamentary majority and pro-business message have led analysts to generally view the government positively on UK assets.

Ashley Webb, an economist at Capital Economics in the UK, said in a note that the recent trend of increases in UK GDP in recent months – apart from the lack of growth in April – “supports the idea that the twin brakes on activity of higher interest rates and higher inflation are starting to fade.”

UK price increases have cooled from a 41-year high of 11.1% in October 2022, all the way to the Bank of England’s 2% target in May this year. The performance has raised expectations of a forthcoming rate cut from the Bank of England.

Still, the BOE remained cautious at its June meeting, even after its peers at the European Central Bank made their own rate cuts. They warned that key indicators of ongoing inflation in the UK remained “elevated.” Markets are still roughly evenly divided on the prospect of a cut at the August meeting.

Agenda of the Labor Party

Related Posts

  • World
  • July 13, 2024
  • 1 views
  • 3 minutes Read
Macron's gamble on early French elections 'didn't pay off', says professor

French President Emmanuel Macron looks on as he heads to a polling station after voting in the second round of the French parliamentary election in Le Touquet, northern France, on…

  • World
  • July 13, 2024
  • 2 views
  • 3 minutes Read
School collapse in Nigeria kills at least 16 students during exams

Jos, Nigeria — At least 16 students were killed on Friday when a school in central Nigeria collapsed on pupils sitting exams, an AFP correspondent said. Trapped students were heard…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

Macron's gamble on early French elections 'didn't pay off', says professor

  • July 13, 2024
Macron's gamble on early French elections 'didn't pay off', says professor

Wie moet USMNT inhuren om Berhalter te vervangen? Analyse van Klopp, Pochettino, Vieira en anderen

  • July 13, 2024
Wie moet USMNT inhuren om Berhalter te vervangen? Analyse van Klopp, Pochettino, Vieira en anderen

School collapse in Nigeria kills at least 16 students during exams

  • July 13, 2024
School collapse in Nigeria kills at least 16 students during exams

Paris Olympic ticket fraud on the rise ahead of the Summer Games. Here’s what to watch out for.

  • July 13, 2024
Paris Olympic ticket fraud on the rise ahead of the Summer Games. Here’s what to watch out for.

USWNT vs. Mexico live stream: Prediction, TV channel, how to watch online, time, news, odds

  • July 13, 2024
USWNT vs. Mexico live stream: Prediction, TV channel, how to watch online, time, news, odds

Biden is faltering. Trump’s plan? Let it happen.

  • July 13, 2024
Biden is faltering. Trump’s plan? Let it happen.

Scientific Tricks to Keep Your Bouquets Looking Fresh

  • July 13, 2024
Scientific Tricks to Keep Your Bouquets Looking Fresh

Waarom voelt Robert Macintyre zich aangetrokken tot Oban, Schotland? Een bezoek aan het huis van de PGA Tour-ster

  • July 13, 2024
Waarom voelt Robert Macintyre zich aangetrokken tot Oban, Schotland? Een bezoek aan het huis van de PGA Tour-ster

EU takes Elon Musk's X to court over blue checks, ads : NPR

  • July 13, 2024
EU takes Elon Musk's X to court over blue checks, ads : NPR

Airline profits lag as travel demand breaks records

  • July 13, 2024
Airline profits lag as travel demand breaks records

Microbeads with customizable fluorescent colors from visible light to near infrared

  • July 13, 2024
Microbeads with customizable fluorescent colors from visible light to near infrared