How fast is the UK economy rebounding?
Following a contraction at the start of the year, investors will find out this week how quickly the UK bounced back as lockdown restrictions were eased, with the release of second-quarter gross domestic product on Thursday. Crucially, data for June will also provide an early indication of whether the spread of the Delta coronavirus variant has held back the recovery.
Economists have pencilled in quarter-on-quarter growth of 4.8 per cent, slightly below the Bank of England’s 5 per cent forecast, following the first quarter’s 1.6 per cent contraction.
A weaker than expected figure might hit the pound and give UK government bonds a boost, as markets push back the timeline for the “modest tightening” outlined by the BoE at its meeting on August 5.