UK economy grows by better-than-expected 0.3% in second quarter
In Brighton Beach in Eastern Sussex, thousands of sunbathing enjoy the warm, sunny air. Amber heat health warning is active throughout the country and the UK is expected to reach 34 ° C during the fourth heat wave of the year.
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The UK economy expanded by a better 0.3% than expected in the second quarter. According to preliminary estimates From the National Statistics Office of England on Thursday.
Economists participating in the survey by Reuters, the country’s gross domestic product (GDP) increased by 0.7% of the bumper growth in the first quarter and expected a warm up to 0.1% during the period.
One month monthly, economy grew by 0.4% in June after a shrinkage of 0.1% in May, and failed to eliminate the impact of US tariffs and work uncertainty.
“The economy was weak in April and May, some activities were brought to February and March before the stamp task and tariff changes, but then healed strongly in June,” he said. He said. Stamp tax refers to the tax on property purchases.
Growth, computer programming, health and car rental in the second quarter was gained acceleration and managed by services. Construction increased, production slightly declined. Three -month growth has been increased with updated source data for April, which shows a contraction than initially predicted.
“Services spent a strong month with scientific R) in June with scientific RES, engineering and automobile sales. In production, the recovered electronic production performed well well.”
After the data version, the British pound was flat from $ 1,3577 against the dollar.
Low is likely to continue rebound
England Chancellor Rachel Reeves, the latest data is positive, but “to offer a working economy for working people,” he said.
“I know that the British economy has key components for success, but he felt stuck for a long time,” he said.
Meanwhile, the Secretary General of the Trade Union Union, Sharon Graham, said that the financial rules of the chancellor limited government borrowing and “chained the economy”.
Authorized, E -Post comments sent by “workers can not wait forever for investment in our public services and sector,” he added.
Whitby, Yorkshire, Houses in England
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Economists said that it is not possible that the positive momentum will continue the third quarter.
After a strong start to the year, the UK economy “took a breath in the second quarter”, Schroders Senior economist George Brown, said in comments sent by e -mail after the data version.
“Nevertheless, a sharp recoil hopes are likely to be cut. The labor market has softened and capacity restrictions mean that even warm growth creates inflation pressures. Considering this, we expect the Bank of England to keep the proportions for the rest of the year.”
Capital Economics, England Chief Economist Ruth Gregory questioned whether the economy will maintain this growth rate.
“The weak global economy will remain a drag on GDP growth for a while. The full drag on the business investment obtained from the tax increases of April has not yet been felt. And the ongoing speculation on the autumn budget on the autumn budget will probably keep consumers in a cautious spirit.
Boe Cut
In a statement Last week, Boe said that the Monetary Policy Committee focuses on sustaining inflation in a 2% target in the medium term “in a sustainable way” existing or the resulting permanent inflationist pressures “.
In addition, underlying the UK GDP growth “in the labor market constantly, gradual relaxation consistently suppressed,” he said.
“Despite the uncertainty of trade policy, the uncertainty of trade policy is slightly reduced, a loose margin is thought to have emerged in the US trade agreement with the US and 10% tariff on exports to the states with the US. Despite the uncertainty of trade policy. “
At the beginning, four members who want to keep the rates, four other people, voted for cutting and a policy -making, which voted for a larger 50 -based deduction to reduce or reducing interest rates. The committee then gave a second vote to reach the majority decision to reduce the rates by 25 basis points.
According to Boe Governor Andrew Bailey, the vote is a reflection of the “fine -balanced situation” in which the MPC currently encounters in terms of factors that direct monetary policy.
He continued: “There is a risk for inflation and especially … This can continue a little more than we expect. In fact, we do not expect, but can it do?” In an interview, Bailey told Ritika Gupta from CNBC. “But … This should be determined in the context of the labor force market conditions that appear to soften.”
