Helena Lyng Blak
8 weeks ago

UK business activity increases

It is a continued sign of economic recovery
Panoramic, aerial view of the skyline of London with a motion blurred cruise ship passing under the lifted Tower Bridge during dusk, England
Sven Hansche / Shutterstock.com

The UK private sector had reported growth for five consecutive months, Bloomberg reports. 

It is the most recent sign that the UK is recovering from its brief recession.

In February, the UK formally entered a recession following the contraction of the British economy over two successive three-month periods.

But in mid-March, data showed that British gross domestic product (GDP) grew by 0.2% month-on-month in January, putting UK growth back in the positive.  

Furthermore, earlier this month, the UK Office for National Statistics (ONS) reported that February inflation rates exceeded expectations and decreased 0.6% from January’s. Investors are currently predicting that inflation will continue to fall throughout spring. Thus, bringing the UK closer to its 2% inflation target.

The overall decline in inflation is fueling speculation that the Bank of England (BoE) may lower interest rates during the summer.

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