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What factors contributed to the UK's 0.6% economic growth?
The UK's 0.6% economic growth in Q2 2024 was primarily driven by the services sector, particularly in IT, legal services, and scientific research. Despite a lack of growth in June, the overall performance was bolstered by a 0.4% increase in May, following a shallow recession in late 2023.
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How does the growth in Q2 compare to previous quarters?
In comparison to Q1 2024, which saw a growth of 0.7%, the Q2 growth of 0.6% indicates a slight slowdown. However, it reflects a recovery trend after a decade of low economic performance, suggesting that the economy is stabilizing despite ongoing challenges.
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What challenges does the UK economy face moving forward?
The UK economy faces several challenges, including high living costs and interest rates. The service sector's struggles in June raised concerns about the sustainability of growth, particularly as the government grapples with a £22 billion financial gap.
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What role did manufacturing play in the UK's economic growth?
Manufacturing showed improvement during Q2 2024, contributing to the overall economic stability. While the services sector outperformed, the growth in manufacturing helped offset some weaknesses in other areas, particularly in June when the services sector did not expand.
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What is the government's plan to address economic challenges?
Chancellor Rachel Reeves emphasized the government's commitment to addressing economic challenges by taking tough decisions to fix the foundations of the economy. This includes focusing on rebuilding the economy and ensuring sustainable growth in the face of financial pressures.