The UK economy actually grew in the second quarter as initial estimates of a 0.1% contraction were revised higher.
With the economy growing the second quarter, the prospect of a technical recession will be pushed back.
“The Final UK GDP rate for second quarter 2022 came in at 0.2%, beating the -0.1% initial expectations. The figure is surprising given the growth outlook for the UK has been deteriorating since the start of the year. There were increases in services and construction output, while production fell,” said Tom Hopkins, Portfolio Manager at BRI Wealth Management.
GBP/USD continued a move the upside on the news and was 0.2% higher at 1.1144 at the time of writing.
Despite the revisions higher in second quarter GDP, the outlook for the Uk economy still remain uncertain with rising rates and a cost of living crisis likely to push the economy into contraction in the third quarter.
