Sad Rabbit Logo

Sad Rabbit

Sad Rabbit Logo

UK Market Insights

Quick Takes - UK Economic Growth Stalls As GDP Revision Dampens Recovery Hopes

SR Team - 1 October 2024

The UK economy hits unexpected turbulence, with the latest GDP data revised down from previous estimates, providing a sobering reminder of the challenges ahead. This latest data paints a picture of a recovery losing steam, with the economy showing no growth in July due to falls in the production and construction sectors. For many, this will feel like a bucket of cold water on the embers of economic optimism, with the road to recovery becoming longer than previously hoped.

The weaker figures indicate that the economy is showing less resilience than anticipated, with speculation that the BoE may need to recalibrate its monetary position and accelerate its dovish stance in line with its US counterparts. Sterling will likely face downward pressure as investors reassess the UK's trajectory and domestically reliant equities may experience heightened volatility. However, this may encourage policymakers to recalibrate current positioning to foster growth and reignite economic confidence.