Deep Dive: UK economy shows signs of rebound but long-term growth outlook remains 'unspectacular'

Structural challenges remain

Valeria Martinez
clock • 4 min read

The UK economy appears to be bouncing back from the technical recession of the second half of last year, but long-term structural challenges are tempering expectations for growth.

Following a 0.2% increase in monthly GDP for January, today's (22 March) UK retail sales figures showed a flatlining in consumer goods purchases last month, contrasting with economist expectations of a 0.4% decline. According to Robert Wood, chief UK economist at Pantheon Macroeconomics, retail sales volumes are on track to rebound strongly in the first quarter, helping the economy to "leave last year's recession behind, as falling inflation boosts consumer spending power". Retail sales beat expectations by holding steady in February A large contributor to the technical recession s...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Friday Briefing: And now we wait for August 
UK

Friday Briefing: And now we wait for August 

Friday Briefing

Eve Maddock-Jones
clock 24 June 2024 • 4 min read
Investor confidence dips in June as global growth remains weak
UK

Investor confidence dips in June as global growth remains weak

2% monthly decrease

clock 20 June 2024 • 3 min read
Core inflation figures 'final nail in the coffin' for hopes of June BoE rate cut
UK

Core inflation figures 'final nail in the coffin' for hopes of June BoE rate cut

'Sticky' core inflation ongoing

clock 19 June 2024 • 3 min read
Trustpilot