Analyst: UK Second-Quarter Growth Likely to Stay Resilient

UK data due on Thursday is expected to show that economic output was flat in May, but underlying momentum should continue to support growth in the second quarter, RSM UK’s Thomas Pugh said in a report. According to Jin10, Pugh said industrial output may have risen as a heatwave increased the use of fans and air conditioning, lifting demand for utilities. He added that manufacturers in May may have continued acting ahead of potential supply shortages, while retail sales rose 1.2% in May. Pugh said the health care sector should rebound after junior doctors’ strikes weighed on activity in April. He also said growth has slowed since the start of the Iran war, but the UK economy has maintained solid momentum. Pugh forecast that the UK economy would grow 0.2% in the second quarter and said full-year growth could be around 1%.