11 July 2024
If you are covering the latest UK GDP data, please see the following comment from Lindsay James, investment strategist at Quilter Investors:
“UK GDP has shown stronger than expected growth of 0.4% in May, following no growth in April. It is positive to see growth pick back up from its stagnant position last month, buoyed by growth of 0.3% in the services sector and supported by better construction output as drier weather likely helped, although data for June is likely to show that growth was dampened by the general election.
“With wage growth outpacing inflation and the prospect of interest rate cuts ahead, this could bring somewhat improved growth as we move further into the summer months. However, regardless of the new Labour government’s agenda, the second half of 2024 is unlikely to see a significant change of pace compared to the first, and we may not see any noticeable difference until next year.
“Labour’s first fiscal statement, which is expected no earlier than mid-September, should make both taxation and spending plans clearer. This will allow businesses to better plan ahead and could in turn reinvigorate their want to invest. However, this would take time to feed through, and until there is a better understanding of what is to come, we are unlikely to see any meaningful acceleration in GDP growth."
