The UK economy returned to showing growth in August after first displaying a contraction in July, thus maintaining market confidence that the Bank of England (BOE) will start raising interest rates before the end of the year.
Most recently, the Office for National Statistics (ONS) reported the UK’s Gross Domestic Product (GDP) rose by 0.4% in August, slightly less than market expectations for a 0.5% increase.
However, this reading shows the UK economy is growing again after contracting in July which declined by 0.1%, according to a revised report.
The latest figures show the UK economy is still 0.8% lower than the level before the Covid-19 pandemic began.
This also marks the pace of Britain’s economic recovery is moderating, unlike when the implementation of the easing of sanctions began in April which showed significantly increased growth.
Even so, investors remain optimistic that the BOE will raise interest rates this year to address growing price pressures.
The International Monetary Fund (IMF) on Tuesday said Britain was on track for the fastest growth compared to other major economies from the G7 by growing by 6.8% this year.
