UK Economy Shows Mixed Signals Amid Slow Growth and Improved Household Finances

Britain's economy grew at a slower rate than initially estimated in the second quarter, with 0.5% growth compared to the previous 0.6% estimate. However, household savings and finances showed signs of improvement. The recent economic adjustments are attributed to lower inflation, reduced interest rates, and political stability.

The UK's economy expanded by 0.5% in the April-to-June period, slightly below the initial estimate of 0.6%, according to data from the Office for National Statistics (ONS). This revised figure lagged behind economists' forecast of another 0.6% rise.

Despite the slower growth rate, household finances showed signs of improvement. The saving ratio increased to 10.0% from 8.9% in the first quarter, and gross domestic product per head rose for the second consecutive quarter, though at a slower pace.

Economic forecasts by the Bank of England anticipate a growth slowdown to 0.3% in the third quarter of 2024. However, lower inflation, anticipated interest rate cuts, and political stability post-election are expected to offer a positive outlook for the UK economy in the latter part of the year.

(With inputs from agencies.)