UK Economy Shows Underlying Strength

The UK economy is maintaining momentum despite higher energy costs, with improving productivity and resilient domestic demand offering some support to the outlook. 

• Productivity rose 0.7% year-on-year in Q2, leaving output per hour 4.6% above 2019 levels. 
• The composite PMI climbed to 52.5 in August, while consumer confidence reached a two-year high; however, exports and employment remain weak. 
• Inflation rose to 2.9% in July, driven largely by energy costs, while cooling wage growth and labour-market conditions point to easing domestic pressures. 

Explore the full report for a closer look at the UK’s growth, inflation and consumer outlook.