GDP shows after the recession comes the recovery   

Sam North, Market Analyst at investment platform eToro, said: “Amid a busy week of UK economic data, Britain’s economy has continued its recovery from last year’s recession, with GDP growing by 0.6% in the second quarter of 2024.

“This growth, while slightly lower than the previous quarter’s 0.7%, aligns with economists’ expectations. The increase was largely driven by a rise in the services sector, particularly in scientific research, IT, and legal services, even as production and construction both contracted.

“Nominal GDP also saw a 0.9% rise, supported by higher corporate profits and employee compensation. Despite the steady recovery, the market reaction remained muted due to the data coming in as anticipated.

“It’s worth noting that June’s GDP figure was completely flat, which might initially raise concerns. However, this could actually provide the Bank of England with further justification to consider cutting interest rates next month.”