Today’s market comment on behalf of Michael Brown Senior Research Strategist at Pepperstone

2024-05-12 05:29:29

(MENAFN- Your Mind Media ) 10th May 2024

This morning's UK GDP figures confirm, as expected, that the economy has now exited the shallow recession into which it fell in late-2023, having chalked up growth of 0.6% QoQ in the first three months of the year, considerably above consensus of an 0.4% pace of quarterly growth. Leading indicators, such as the most recent round of PMI surveys, point to this relatively solid momentum having continued early in the second quarter, particularly in the all-important services sector. Maintaining this momentum, however, will likely require services output to remain resilient, along with consumer spending continuing to pick-up. A looser policy stance will, naturally, aid with this. Hence, if, as expected, after yesterday's dovish statement and press conference, the Bank of England do deliver the first 25bp cut in June, and cut at a quarterly pace after that, gradually removing restriction from the economy, the outlook looks relatively positive for UK Plc over the remainder of 2024.

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