UK Emerges from Recession as Private Sector Growth Hits Nine-Month High

Recent data indicates the UK's economy is growing, with a significant surge in private sector activity leading to optimistic forecasts for the first quarter of 2024.

• Britain's private sector is expanding at its fastest rate since May 2023, signaling the end of the recession.
• Economists predict the UK economy will grow by 0.2% to 0.3% in the first quarter of 2024, dispelling fears of a prolonged downturn.
• Input price inflation remains high, driven by service sector wage growth and increased shipping costs due to the Red Sea crisis.
• Despite inflation concerns, the Bank of England is expected to start cutting interest rates this summer as overall CPI inflation is projected to fall below 2% in April.
• Optimism among businesses has reached its highest level in two years, fueled by improved borrowing costs and resilient consumer demand.

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