Sep
2024
UK GDP changed 0% in July, but overall trend still up
DIY Investor
11 September 2024
Sam North, Market Analyst at investment platform eToro, says: “This latest GDP report out of the UK offers a mixed bag for analysts and investors alike. While it highlights economic stagnation for the second consecutive month, the data also shows growth over the three-month period leading to July. It’s not a strong report, but I don’t believe it’s cause for panic just yet.
“Exiting a recession is rarely a smooth process, and fluctuations in month-to-month data are not uncommon when looking at GDP figures. However, it’s crucial to keep in mind that the overall trend since Q3 2023 has been upward, which is a positive sign despite short-term volatility.
“As for the Bank of England, the decision on whether to cut interest rates further this month remains up in the air. If the Bank continues with rate cuts over the coming months, it may help stimulate economic activity, potentially making future GDP reports look far more encouraging.”
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