According to Jin10 data, HSBC pointed out in its report that although the UK's economic growth of 0.7% in the first quarter exceeded expectations, it may face a downturn in the future due to global uncertainty. One-off investments drove strong investment, but trade in the second quarter may decline due to the pre-existing burden on exports.
In addition, the increase in water and electricity costs, along with the rise in payroll taxes and minimum wage adjustments, will also impact the economy due to the increased labor costs for businesses. Nevertheless, economic growth in the first quarter remains strong, with inflation declining and the labor market remaining resilient. The Bank of England expects economic growth of 0.6%, which will support its 'cautious and gradual' interest rate cut strategy.