Focus on the BIG picture.
Sunday, Jan 19, 2025
Outside the box.
UK Economy Expands for Second Consecutive Month: Recession May Be Over
The UK economy grew for the second month in a row in February, with a 0.1% expansion in national output.
This follows a revised 0.3% growth in January, according to the Office for National Statistics.
These back-to-back growths suggest the UK may be emerging from a mild recession, marked by two consecutive quarters of economic contraction.
Analysts had forecasted this growth rate.
The UK economy showed signs of recovery in February 2024 with a 0.6% growth, bringing the country closer to ending the recession.
Production sector grew by 1.1%, while services output rose modestly by 0.1%.
Matthew Ryan, Head of Market Strategy at Ebury, expressed optimism, attributing the growth to the easing inflation and upcoming drop in household energy bills.
The UK's economic growth was modest at 0.1% in the third quarter of 2022, with construction output being the main contributor to the decline at 1.9%.
Wet weather was cited as the reason for the drop.
Chancellor Jeremy Hunt viewed the data as a positive sign that the economy is improving, despite the Conservative party facing an expected general election in 2024 following last year's recession.
The Bank of England may now delay interest rate cuts, as the data suggests a potential economic turnaround.
The Bank's interest rates are currently at a 16-year high of 5.25% from June.
These back-to-back growths suggest the UK may be emerging from a mild recession, marked by two consecutive quarters of economic contraction.
Analysts had forecasted this growth rate.
The UK economy showed signs of recovery in February 2024 with a 0.6% growth, bringing the country closer to ending the recession.
Production sector grew by 1.1%, while services output rose modestly by 0.1%.
Matthew Ryan, Head of Market Strategy at Ebury, expressed optimism, attributing the growth to the easing inflation and upcoming drop in household energy bills.
The UK's economic growth was modest at 0.1% in the third quarter of 2022, with construction output being the main contributor to the decline at 1.9%.
Wet weather was cited as the reason for the drop.
Chancellor Jeremy Hunt viewed the data as a positive sign that the economy is improving, despite the Conservative party facing an expected general election in 2024 following last year's recession.
The Bank of England may now delay interest rate cuts, as the data suggests a potential economic turnaround.
The Bank's interest rates are currently at a 16-year high of 5.25% from June.
