According to Jin Ten data, although analysts expect a slight rebound, the UK economy contracted by 0.1% in May. This indicates that Chancellor Reeves and the Labour government will face challenges.
The Labour government's commitment to revitalizing economic growth is at the heart of supporting Reeves' spending plan. The Bank of England warns that potential growth remains weak and adds that economic activity in the first quarter was boosted by one-off factors, such as adjustments to stamp duty.
Previously, the Bank of England kept interest rates unchanged at 4.25% last month, but the market expects that at the next meeting in August, the central bank is very likely to cut rates by 25 basis points.