UK Economy Shows Slight Growth in February, Averting Deep Recession
Despite a modest 0.1% increase in GDP, concerns about the economy's fragility persist as key sectors like construction face setbacks.
- UK GDP grew by 0.1% in February, indicating a potential end to the technical recession that began in the second half of 2023.
- Manufacturing sector, especially car production, showed notable improvement, while construction was hampered by adverse weather.
- Economists remain cautious, predicting a slow recovery with GDP expected to grow modestly in the first quarter of 2024.
- Consumer spending continues to be subdued, with significant cutbacks on non-essential spending reported.
- Financial markets have adjusted expectations, with fewer anticipated rate cuts from the Bank of England in 2024.