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2025-09-12 17:20:07
[British media: The UK economy is "stuck", and inflation cooling still needs a "soft landing"] ⑴ After the UK economy grew by 0.4% in June, data in July showed that monthly economic activity growth was flat, which was in line with market expectations. However, the annualized growth rate of 1.4% is still significantly higher than that of neighboring countries such as Germany and France. ⑵ Analysts pointed out that if productivity fails to improve significantly, a slowdown in gross domestic product (GDP) growth is key to achieving the Bank of England's 2% inflation target. The slowdown in government spending and the impact of companies digesting the April tax and minimum wage increases indicate that the economy may be entering a period of downturn. ⑶ This economic weakness may lead to stagnant job growth and slower wage growth. Once inflation falls as a result, the Bank of England may be able to cut interest rates further.
