According to recent data, the UK economy is on track for recovery from the recession with growth in February. While the growth is expected to be minimal, with a forecasted increase of only 0.1%, it would mark the first consecutive months of growth since August to September. Despite this progress, the growth levels are still far below those seen in previous decades or in other countries.
If the UK experiences a second quarter of growth, even if it is minimal, it is likely that the country exited the recession in the fastest time possible, making it one of the smallest official slumps in history. However, surveys indicate that the growth in February will be supported by rebounds in the construction and manufacturing sectors, which have been struggling since 2022. The dominant service sector, which had been driving growth in 2023, is expected to see a more modest increase of 0.1%.
Concerns have been raised about slower service sector growth potentially impacting future economic growth. However, this could also prompt the Bank of England to consider cutting interest rates sooner rather than later, which could be positive for the FTSE 250. Overall, recent data suggests a gradual recovery in economic activity led by
