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2026-07-16 19:20:12
[Uneven Growth Engines in the UK: Julius Baer Warns New Chancellor Against Wasting Hard-Won Recovery] ⑴ Julius Baer analysts point out that UK GDP grew by 0.1% month-on-month in May, with the service sector leading the way at 0.3%, while industrial output and construction both contracted, reflecting a structural imbalance in the economic recovery. ⑵ Although the country's economy is progressing slowly, business confidence remains fragile. The growth is hard-won and unevenly distributed; the superficial improvement in monthly data cannot mask deeper concerns. ⑶ GDP grew by 0.7% in the three months to May, a trend better than the monthly figures, providing policymakers with some buffer. ⑷ The incoming Chancellor faces a wise choice: not to waste the current growth advantages. Finding a balance between consolidating the momentum of the service sector and boosting industry and construction will be the new Chancellor's primary challenge.
