The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year. Growth across the three months was led by the service sector, particularly in scientific research, IT, and legal services.
Despite the quarterly rise in activity, figures for June showed zero growth month on month, amid a washout summer for retailers as cold and wet weather deterred shoppers from spending.
We think the quarterly data probably overstates the underlying momentum in the economy, with recent CBI surveys of activity remaining fairly subdued. However, firms nonetheless appear confident that the recovery will continue.
Consumer-facing service output fell by 0.1%, reflecting the weaker period for purchases of physical goods amid the cost of living crisis and poor weather hitting retail sales.
[
Collection
]
[
|
...
]