The UK economy is at a “turning point” after February's 0.1% rise in gross domestic product (GDP), according to analysts at Deutsche Bank.
Following the data from the ONS showing a second consecutive month of economic growth, “The technical recession is behind us,” the bank commented,
“The outlook is brighter than it was a few months ago. Fiscal offsets are already in motion,” the bank added.
“We expect the MPC to gradually dial down the level of restrictiveness in monetary policy.”
Deutsche forecast UK GDP to climb by 0.5% this year, before growing as much as 1.5% in 2025.
The ONS data showed an uptick in the production and service sectors, fuelled by strong manufacturing activity alongside transport and storage services respectively.
Construction activity remained muted though, as heavy rainfall took its toll.
EY ITEM Club added momentum should continue to build over the rest of the year buoyed by strong wage growth and falling inflation, prompting a “consumer-led recovery”.