Data from the Office for National Statistics has showed that GDP growth had doubled in the second quarter of 2018, hitting 0.4% in the three months running up until the end of June.
According the Office for National Statistics on the 10th of August, the UK’s growth, which was in-line with market expectations, outshone the Eurozone in the same period, with Euro GDP only registering 0.3% growth.
In the second quarter, the UK experienced warm weather as well as one of events such as the Royal Wedding and the World Cup, and Laith Khalaf, senior analyst at Hargreaves Lansdown, warned that to some extent the UK economy was “bailed out”.
"The shackles are still on the UK economy, and that spells more of the same in terms of interest rate policy for the foreseeable future,” said Khalaf.
The most improving sector was in business investment, with growth swinging from 0.4% negative in the first quarter but rose to 0.5% in the positive in the second quarter.
Positive News For Business
Although the UK are likely to be trading and operating on different terms in the long-term, given their perceived untidy exit from the European Union, the data showing the UK economy outperforming the Eurozone and the improvement in business investment will provide encouragement to businesses all over the UK.
It’s been a rocky couple of years for the UK economy since the famous EU Referendum result in 2016, and news that consumers are spending the UK economy is growing is welcome information to traders.
It was recently revealed that UK public spending was highest among the Northern Irish in 2017.
Despite strong performance for many aspects of the UK economy in the second quarter, the manufacturing sector found itself in recession for the first time since the UK elected to leave the European Union.
Pound Wholesale’s most popular items in June very much correlated with the hot weather, as businesses and traders looked to cater for Brits experiencing the heat all over the country.
It seems that the hot weather, the Royal Wedding and World Cup fever gripped the UK in the second quarter, but there are bigger challenges for the UK economy ahead.