UK GDP grew by 0.2% in January, signaling positive turn in economy

From Morningstar:

According to the Office for National Statistics, the UK GDP grew by 0.2% in January, indicating a positive turn in the economy after a decline in late 2023.

Michael Field from Morningstar believes this growth may signal a shift, but also points out that the UK economy is not yet out of the woods.

Industrial production declined by 0.2%, and imports rose to £72.39 billion, while exports increased at a slower pace to £69.26 billion in January.

Lindsay James from Quilter Investors agrees that the UK economy is showing signs of improvement but disagrees with the timing of a rate cut. Inflation is expected to fall in the coming months, easing pressure on households. The recent Budget highlighted the need for the Bank of England to drive economic growth through interest rate cuts.

At the recent Budget, chancellor Jeremy Hunt stated that inflation was expected to hit target this year, contrary to the Bank of England’s projections.



Read more at Morningstar: UK GDP Improves, Rate Cut ‘Sooner Rather Than Later’