Kevin Brown, Savings Specialist comments on todays GDP data

 "While growth cooled in the second quarter (1), the UK economy is proving far more resilient than many would have expected, especially given the headwinds currently being faced.
“But the real question is how long that can last. The longer the conflict in the Middle East drags on, the greater the risk that it leads to rising prices, which will pile pressure on firms and force households to rein in their spending, which would have a negative knock-on effect on growth.

“The Treasury has modelled that if the conflict continues until the end of the year, it will severely hamper growth next year (2), suggesting that the resilience the economy has shown so far won’t last forever.

“For savers, the sensible move is to ready their finances for prolonged uncertainty. That means building up a cash buffer wherever possible, shopping around for the best savings rates and energy tariffs, and putting any spare cash to work in the stock market, where the potential for higher returns is greater.”

(1) Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/apriltojune2026

(2) Source: https://www.bbc.co.uk/news/articles/c5y3egv4m4mo