Weekly Market Update – Week Ending 12/04/24
It was announced this week that the UK economy grew for the second month in a row in February. Gross domestic product (GDP) rose 0.1% in the month, causing optimism that the UK’s technical recession may be coming to an end. Although we have now seen two consecutive months of increases, GDP still remains below the level seen this time last year.
The cost of living crisis in the UK is impacting on the amount UK adults are saving and investing according to a study by the Financial Conduct Authority (FCA). 44% of adults have either stopped or reduced their saving and investing due to the high cost of living, up from 40% of people a year ago. Although wages have increased during this time period, inflation has remained, putting pressure on household spending.
Inflation in the US came in stronger than expected this week, posting a 3.5% rise in prices for the year to March. This was in contrast to the February figure of 3.2%, which shows inflation in the US remains ‘stickier’ than investors were anticipating. On Wednesday, the White House said that they had always expected the lowering of inflation would be bumpy, but that it will start easing again soon.
Andrea Wood, Chartered MCSI
Investment Manager
