UK GDP two steps forward and one back

Ben Laidler, Global Markets Strategist at eToro says: “The UK economic recovery suffered a temporary setback with April posting 0% month-on-month growth, the lowest in four months, as manufacturing headwinds offset the resilience of services.

“This stalling in the tentative economic recovery will only help further make the case for the Bank of England to follow the ECB in cutting interest rates over the summer, with inflation nearing 2% and unemployment rising.

“This lukewarm growth will fan the political debate ahead of the July election, but the economy remains on a gradual recovery path, with unemployment still near generational lows and real wages rising as inflation has fallen.”