In light of the recent performance of GDP figures, the UK economy could have averted slopping into a technical recession, suggested Lee Sue Ann, Economist at UOB Group.
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“Indeed, the risk of the UK sliding into its first recession in a decade has receded following a stronger-than-expected GDP growth in July”.
“UK GDP rose by 0.3% m/m, beating expectations of just 0.1% m/m. Manufacturing and construction were also in positive territory – up by 0.3% m/m and 0.5% m/m respectively. Growth was flat over the three months to July, but this was an improvement on the 0.2% contraction seen in the April-to-June quarter”.
“July’s figures are the first in a crucial third quarter as UK politicians continue their squabble over Brexit, with the outcome still far from certain”.
“Following the contraction in the second quarter, the chances of a negative GDP print in the third quarter have now fallen significantly, meaning that a technical recession will likely be avoided“.
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