The UK economy has performed well so far this year, though experts suspect these kinds of growth rates can't be sustained into the second half of the year. They also doubt the second quarter strength will have much of a bearing on how rapidly the Bank of England cuts rates over the coming months.
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The first six months of data is in and the result is clear: the UK economy has had a much better start to 2024 than pretty much anyone had expected.
Admittedly, the economy flatlined if you look at June specifically. But overall second quarter growth of 0.6%, hot on the heels of 0.7% in the first quarter, marks a remarkable rebound from a very minor technical recession in the second half of last year.
Services contributed strongly to second quarter growth, but a lot of that can't be explained by consumers. Instead, it was areas like professional services that gave the economy a boost.
Will UK growth continue? Experts say it's hard to see the UK sustaining these kinds of figures into the second half of the year, though continued impetus from disposable incomes should generate a respectable, if more modest, growth rate of 0.3% in the third quarter.
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