UK GDP beats expectations in Q2

The UK in Q2 posted GDP growth of 5.5% which came in over analysts’ expectations of a 4.8%. This was taken as a positive sign that the economy in the UK remained in better shape than many had expected and is now only 3.3% lower than the pre pandemic GDP print. This data is a quarter old and many in the market are focusing on the Q3 numbers which are penned to be lower than Q2. Conversely, many also believe that Q4 should be better than this as we run into Christmas and consumer spending and confidence takes a leg higher. With UK furlough set to end in October there are questions about the 1.6m employees who might be about to enter the labour market, or not at all as some are fearing which might affect the economic picture in the UK for 2022.