According to Jin Shi 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 uncertainties. One-time investments drove strong investment; however, trade in the second quarter may decline due to prior export burdens.
Additionally, the increase in water and electricity rates, along with the rise in payroll taxes and minimum wage, has led to an increase in labor costs for businesses, which will also have an impact on the economy. Nevertheless, economic growth in the first quarter remains strong, inflation is declining, and the labor market remains resilient. The Bank of England expects economic growth of 0.6%, which will support its 'cautious and gradual' interest rate cut strategy.