With a growth of 0.6% compared to the previous quarter and 0.9% over one year, the UK economy is returning to colour.
The strong increase in public spending - just before the 4 July elections - contributed to this good result. But the economy is improving. At 2.2% in July, inflation is now close to the targets of the Bank of England, which should allow it to continue lowering key interest rates.
At the same time, the country seems to be poised for a long period of political stability and early indicators point towards better governance under Sir Keir Starmer’s Labour.
Households also seem to have regained some of their lost confidence, and retail sales rebounded in July (+1.4% year-on-year). The UK therefore seems to be moving towards a more favourable period.
We continue to invest in this as part of our dynamic portfolio.