Rolling coverage of the latest economic and financial news
There’s a danger that the UK economy slows later this year, points out Andrew Hunter, senior economist at Moody’s Analytics:
“The 0.4% rise in U.K. GDP in the second quarter was slightly stronger than we expected and suggests the economy has remained resilient to the surge in energy prices.
Adding to the positive news, growth was driven by solid gains in household consumption and business investment, and included a healthy 0.3% monthly rise in output in June, suggesting momentum was sustained as the quarter progressed.
“A strong July provides a robust start to the third quarter, although weakness in consumer-facing sectors points to softer growth.
“Despite strong activity in July, the headline growth figure masks a weaker picture for households. Consumer-facing services contracted in July, as retail and hospitality activity fell following earlier increases in activity in the summer. Higher energy and fuel prices are likely to place further pressure on household budgets, while elevated mortgage rates will continue to weigh on housing activity and wider consumer spending.
