English
پارسی
UK Economic Report
Business Investment Declines Sharply
UK business investment slumped by 4.0% quarter-on-quarter (q/q) in Q2 2024, sharply reversing Q1’s +3.9% growth and missing expectations of a +0.1% rise. Year-on-year (y/y) growth nearly stalled at +0.1%, down from +6.1% in Q1, reflecting weakened business confidence due to higher financing costs and policy uncertainty.
Construction Output Edges Higher
In contrast, construction output rose 0.3% month-on-month (m/m) in June, matching forecasts, with 1.5% y/y growth (vs. 1.4% prior), supported by repair and maintenance work. This suggests stabilization in on-the-ground activity despite corporate caution on large-scale capital expenditure.
GDP Growth Exceeds Expectations
The UK economy expanded 0.3% q/q in Q2, beating forecasts of 0.1% but slowing from Q1’s 0.7%. Yearly GDP growth was 1.2% (vs. 1.3% prior). June saw a 0.4% m/m rebound (vs. 0.2% expected), lifting the 3-month/3-month growth rate to 0.3%. However, the trade deficit widened to £22.16 billion (vs. £21.70 billion expected), with the non-EU gap hitting £10.78 billion (prev. £9.75 billion).
Services and Industry Show Resilience
June saw services output rise 0.4% m/m, while industrial production grew 0.7% m/m, reversing May’s decline. Manufacturing increased 0.5% m/m but was flat y/y. The recovery in consumer-facing services and factory output suggests late Q2 momentum, balancing earlier weakness in goods production.
Comments