{"id":697366,"date":"2026-07-17T22:04:17","date_gmt":"2026-07-17T22:04:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/697366\/"},"modified":"2026-07-17T22:04:17","modified_gmt":"2026-07-17T22:04:17","slug":"british-economy-is-tracking-materially-stronger-than-expected-says-investment-bank","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/697366\/","title":{"rendered":"British economy is tracking materially stronger than expected, says investment bank"},"content":{"rendered":"<p>    <a href=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/917F8AE26CD18414E5CE4EDD8D8C7C4DD458F89C7511F1F6ED1C155B8DC3BC6F\/subgraphmysterio\/resizefit_w960;quality_80;format_webp\/https:%2F%2Fmedia.zenfs.com%2Fen%2Fproactive_uk_164%2F2e528e0f45e5ed2abcf46b7f08e24f8d\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"British economy is tracking materially stronger than expected, says investment bank\" height=\"540\" width=\"960\" class=\"yf-lglytj loader\"\/><\/a> British economy is tracking materially stronger than expected, says investment bank Proactive uses images sourced from Shutterstock           <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Britain&#8217;s economy is tracking materially stronger second-quarter growth than UBS expected after GDP returned to expansion in May, signalling limited fallout so far from the Middle East energy shock.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">GDP rose 0.1% month on month, beating expectations for stagnation and reversing April&#8217;s 0.1% contraction. UBS calculated that output across April and May was consistent with quarterly growth of 0.4%, well above its current 0.1% forecast.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Services drove the rebound, expanding 0.3% as professional and scientific activities and administrative support recovered from April&#8217;s declines. Industrial production fell 0.5%, while construction output dropped 0.8% because of weaker repair and maintenance work.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;Today&#8217;s GDP release clearly implies an upside risk to our Q2 GDP forecast and, by extension, the 2026 annual average,&#8221; UBS economists said.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">However, the bank retained its full-year forecasts of 1.0% growth in 2026 and 1.1% in 2027, warning that stronger first-half activity could be followed by weaker growth later in the year.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;We remain cautious about some payback in H2,&#8221; UBS said, noting that residual seasonal effects may have boosted recent first-half growth.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">UBS AG is a Swiss-headquartered global financial services group providing wealth management, investment banking, asset management and banking services.  <\/p>\n","protected":false},"excerpt":{"rendered":"British economy is tracking materially stronger than expected, says investment bank Proactive uses images sourced from Shutterstock Britain&#8217;s&hellip;\n","protected":false},"author":2,"featured_media":697367,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[17119,84,1294,56,54,55],"class_list":["post-697366","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-british-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/697366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=697366"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/697366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/697367"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=697366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=697366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=697366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}