The UK economy expanded by 0.4% in May, well above forecasts in the 0.2% area. That matches March’s growth and comes after the economy recorded no growth in April.
Sterling rose this morning against its rivals on the back of the news. GBP/USD was in touching distance of its highest level since March in early-morning trading, while the euro also strengthened.
The Bank of England’s Huw Pill also contributed to sterling’s strength. In a speech yesterday, the Bank’s chief economist said the economy was making strong progress in its efforts to conquer inflation, although he tempered that with the observation that services inflation and wage growth remained ‘uncomfortably strong’.
Other sources of meaty data remained hard to come by. However, you can find all the most important figures, along with expert analysis and currency predictions from leading banks in our July to September Quarterly Forecast. Keep your eyes peeled to secure your copy — it will be hitting your inbox today.
UK prime minster Keir Starmer made his first real appearance on the global stage yesterday at a Nato summit in Washington. With the world’s cameras trained on him, Starmer discussed security and defence spending, while also talking through his plans for reform in the House of Lords.
Joe Biden continues to come under pressure to drop out of the US presidential election. Even erstwhile allies like Nancy Polisi are calling for a rethink. Pelosi yesterday stopped short of endorsing Biden for a second term and urged him to make a decision before time ran out.
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