The UK economy is recovering from high inflation
Amid a long and often fractious general election campaign in the UK, it has been easy to overlook breaking economic news. But the latest data on the UK’s economic performance is encouraging. Figures just published by the Office for National Statistics reveal that GDP growth during the first quarter of the year, at 0.7%, was stronger than previously estimated. Indeed, the UK was the fastest-growing economy in the G7 during the first quarter of the year – and with the Bank of England now having succeeded in getting inflation down to its target levels, interest rate cuts could provide further support for growth.
The UK’s services sector, in particular, appears to be outperforming, while businesses in areas such as manufacturers are still struggling to accelerate out of the recession that hit the country last year. But there are bright spots across the economy, and business optimism now appears to be improving – one recent survey by Lloyds Bank found British businesses were feeling more confident than at any time in…
