“These figures confirm a better-than-expected end to 2024 as the loss of confidence following the budget was more than offset by a bumper December where strong services activity helped boost overall output.
“Despite this positive outturn, the drop-off in economic activity in the second half of last year suggests that the big picture remains one of stagnation amid the loss of confidence following the budget and longstanding difficulties, including poor productivity.
“The UK economy could well see slightly stronger growth this quarter with the boost to consumer spending amid decent real wage growth likely to help offset the squeeze on sentiment from geopolitical uncertainty and looming tax rises.
“Despite these more positive figures, with rate setters currently more worried about a stagnating economy than rising inflation, another rate cut sooner rather than later remains on the table.”
ENDS
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