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UK‘s Growth Momentum Remains Healthy But Pace Slows - NIESR
Monthly GDP flatlined in July, after experiencing flatlined growth in June. This monthly figure was supported by growth from services output which was offset by falls in production and construction sectors. GDP grew by 0.5 per cent in the three months to July. This growth was consistent with our forecast published last month and mainly driven by Services sectors.
The UK was the fastest-growing economy among the G7 in the first half of this year, which could be attributed to ‘catch-up’ effects after experiencing a shallow technical recession last year. However, higher-frequency indicators and survey data highlight signs of slowing down ？ while business activity continues to expand, we can expect the pace of growth to be slower compared what we have seen since the beginning of the year.
In that light, we forecast GDP to grow by 0.2 per cent in the third quarter of 2024, driven by the services and construction sectors. As the new government‘s first fiscal event approaches, we hope policymakers will implement policies that not only sustain the momentum we have seen but also foster robust and sustained economic growth across the country.
The UK was the fastest-growing economy among the G7 in the first half of this year, which could be attributed to ‘catch-up’ effects after experiencing a shallow technical recession last year. However, higher-frequency indicators and survey data highlight signs of slowing down ？ while business activity continues to expand, we can expect the pace of growth to be slower compared what we have seen since the beginning of the year.
In that light, we forecast GDP to grow by 0.2 per cent in the third quarter of 2024, driven by the services and construction sectors. As the new government‘s first fiscal event approaches, we hope policymakers will implement policies that not only sustain the momentum we have seen but also foster robust and sustained economic growth across the country.
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