Guided tour in York city center, UK, on Friday 7th June 2024.
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The UK economy grew by 0.6% in the second quarter of this year, the Office for National Statistics said on Thursday, extending the country’s cautious rebound from recession.
The data was in line with expectations of economists polled by Reuters, which said the economy grew 0.7% in the first quarter.
Economic growth was flat in June, with activity in Britain’s dominant services sector falling 0.1%, according to a Reuters survey. Construction and production output grew 0.5% and 0.8% respectively this month.
So far this year, the British economy has recorded small but steady growth almost every month as the country emerges from a shallow recession. GDP was also flat in April as wet weather dampened retail sales and construction output.
On an annual basis, the economy grew by 0.9% in the second quarter, compared with expectations of 0.8%.
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said: “These figures confirm that the UK recovered from recession in the second quarter, despite strike action and wet weather leading to a flattening of economic activity in June. momentum has increased.
Thiru continued: “The UK’s strong growth in the second quarter was more attributable to the recent sharp fall in inflation and a boost from consumer spending due to events such as Euro 2024, rather than a significant improvement in the UK’s underlying growth trajectory.”
Thiru added that the pace of growth is unlikely to be sustained in the second half due to weak wage growth, high interest rates and supply challenges.
This is a breaking news story and will be updated soon.
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