UK economic growth is \u201csubdued but not stalling\u201d, according to economists at PwC, as they upgraded projections for the current year.<\/p>\n
Experts at the accounting and financial services giant have said that UK gross domestic product (GDP) is now on track to grow by 1.3% in 2025.<\/p>\n
It had previously pointed towards an increase of 1.1% for the year.<\/p>\n
The new forecast was driven by a stronger than expected first half of the year, with growth of 0.7% in the first quarter and 0.3% in the second quarter.<\/p>\n
PwC\u2019s research indicated that growth was \u201cflattered\u201d by Government spending, with higher state consumption and investment in healthcare helping to support growth in the second quarter.<\/p>\n
It suggested that household consumption moderated over the quarter, while investment fell as firms were impacted by economic uncertainty and rising costs.<\/p>\n
Barret Kupelian, PwC UK chief economist, said consumer spending has been somewhat better than expected despite being broadly flat in recent months.<\/p>\n
\u201cGrowth is subdued but not stalling,\u201d he said.<\/p>\n
\u201cThe UK economy continues to tread water, with GDP growth flatlining but avoiding outright contraction.<\/p>\n
\u201cConsumer spending has held up better than expected, although higher interest rates are now feeding through more clearly into investment and housing.\u201d<\/p>\n
PwC\u2019s research indicated that a \u201clasting recovery will require household spending and private sector activity to pick up\u201d.<\/p>\n
It suggested that GDP is currently forecast to increase by 1.2% next year but could see this rise to as much as 1.6% if there is an increased shift from saving towards spending.<\/p>\n
Mr Kupelian added: \u201c\u201dThis month\u2019s economic picture is a story of gradual change rather than dramatic shifts.<\/p>\n
\u201cHeadline CPI has moved lower, helped by falling energy prices, but services inflation remains sticky.<\/p>\n
\u201cThis suggests that the path back to target may be uneven, with wages and domestic costs playing an increasing role in shaping the outlook.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"UK economic growth is \u201csubdued but not stalling\u201d, according to economists at PwC, as they upgraded projections for…\n","protected":false},"author":2,"featured_media":453505,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[152322,51,13205,5286,1700,152319,32130,152321,152320,16,10051,15],"class_list":{"0":"post-453504","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-barret-kupelian","9":"tag-business","10":"tag-consumer-spending","11":"tag-economic-growth","12":"tag-economy","13":"tag-financial-services-giant","14":"tag-pwc","15":"tag-stalling","16":"tag-subdued","17":"tag-uk","18":"tag-uk-economy","19":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115272241954497761","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/453504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=453504"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/453504\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/453505"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=453504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=453504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=453504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}