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UK GDP rose 0.4% in Q2, but economists warn of a tougher outlook
Growth was supported by weather and the football World Cup, but the ONS flagged volatile energy prices tied to the Iran conflict as a risk.
The UK economy grew by 0.4% between April and June, according to official data cited by BBC Business, matching market expectations but coming in below the 0.6% rise in the first quarter.
The Office for National Statistics said growth has remained relatively robust versus other G7 countries this year, with the economy now 1.2% larger than a year ago. ONS also pointed to temporary drivers, including good weather and sporting events, which it said may have helped boost June activity.
Sector data showed computer programming, advertising, and pharmaceuticals supporting growth, while power generation and sewerage fell. ONS also said June month-on-month growth reached 0.3%, after May’s growth was revised down from 0.1% to zero.
Despite the stronger quarter, experts questioned whether the momentum can continue as the Iran war, which began at the end of February, could weigh on growth through energy price volatility. BBC Business also reported that some businesses told the ONS that energy shock conditions had stabilized, but Institute for Economic and Social Research associate economist Fergus Jimenez-England said the recent pace of growth is unlikely to be sustained.