Spotlight on UK rate hike as recovery picks up

Last week’s preliminary estimate of UK second-quarter GDP showed that the economy continued to maintain its strong momentum.

The economy registered quarterly growth of 0.8%, matching its pace from the first quarter. On a year on year basis, the rate of growth picked up to 3.1% from 3%.

While the expenditure breakdown of the latest GDP data is not yet available, retail sales data over the period indicate that consumer spending remained an important driver of growth.