Ggood morning.
We start the day with some unexpectedly positive data showing that the UK economy grew more than forecast in May.
According to the ONS, GDP rose 0.5 percent in May. That’s a sharp improvement from the 0.2 percent drop in April, which was previously revised from 0.3 percent.
Growth is coming to a 40-year high in May, despite inflation rising in May, amid rising energy costs due to Russia’s war in Ukraine.
Motorists are paying record prices at the pump and household budgets are under pressure from the largest drop in living standards in a generation.
But the surprising jump in GDP is defying expectations of a contraction in the second quarter and will calm fears that Britain will slip into recession later in the year.
5 things to start your day with
1) Europe faces an aging population nightmare in ‘absolute collapse’ As populations shrink, nations must cope with economic pressures
2) Families £8,800 worse off due to ‘toxic combination’ at heart of economy Poorest French households £3,800 better off than UK counterparts, data shows
3) Churchill’s tailor Gieves & Hawkes for sale Retailer also dressed Lord Nelson for the Battle of Trafalgar and the British Royal Family
4) High interest rates are temporary, Andrew Bailey says Bank of England governor hints at return to ‘low global’ rates
5) Putin invades soldiers’ prisons after massive losses in Ukraine The Kremlin also recruits heavily from the poorest parts of Russia, Western officials say
What happened overnight?
Shares in Hong Kong were slightly higher this morning after two days of heavy losses.
The Hang Seng index added 0.3 pc, the Shanghai Composite Index fell 0.06 pc, while the Shenzhen Composite Index barely moved on China’s second exchange.
Tokyo stocks opened higher, with the benchmark Nikkei 225 index up 0.5 percent in early trading and the broader Topix index up 0.4 percent.
coming today
- Economy: GDP (UK), Industrial Production (UK), Industrial Production (UK, EU), Consumer Price Index (US), RICS House Price Balance (UK), Trade Balance (China)
- For Business: PageGroup (interim results); JD Wetherspoon, Tullow Oil (trade update)