Commenting on the latest ONS GDP data, Kevin Brown, savings expert at financial mutual Scottish Friendly, says
“Renewed strikes in the Middle East have taken some of the shine off what would otherwise have been considered a fairly positive GDP reading today.
“The economy grew by 0.1 per cent in May and continued to expand over the latest three months, demonstrating a degree of resilience that should be welcomed (1).
“But growth on paper may mean little to many UK households while concerns about volatile energy prices, inflation and everyday bills (2) continue to overshadow the wider picture.
“The real test is whether this momentum can be sustained long enough to improve living standards and give people greater confidence to spend, save, and plan ahead.
“Today’s reading does little to change the outlook for interest rates, with the Bank of England likely to remain cautious about cutting its base rate while inflation risks remain elevated (3).
“When geopolitical tensions flare, protecting your finances becomes even more important. Those with a secure cash buffer and sufficient financial headroom may therefore want to consider investing money to give it a better chance of keeping pace with rising living costs and building financial resilience.”
(2) Source: https://www.ofgem.gov.uk/press-release/energy-price-cap-will-rise-13-july?utm_source=chatgpt.com