The UK economy continued to rebound cautiously from a recession. GDP grew by 0.6% q/q in 2Q24, after rising by 0.7% q/q in 1Q24. This was in line with consensus expectations, but a tad lower than the Bank of England (BOE)’s forecast for a 0.7% gain, UOB Group economist Lee Sue Ann notes.

Economy continues to recover

“The UK's economy grew by 0.6% between Apr and Jun as it continued its recovery from the recession at the end of last year. The latest figure was in line with forecasts and follows a 0.7% increase in the first three months of this year.”

“Annual CPI inflation rate rose to 2.2% in Jul, its first acceleration since Dec last year, and is expected to remain above its 2% target for the rest of the year. Separately, unemployment fell unexpectedly after companies stepped up hiring.”