The UK economy grew by 0.4% between April and June, offering a welcome sign of resilience despite continued pressure from rising costs and global uncertainty.
Latest figures from the Office for National Statistics (ONS) show that economic activity remained “fairly robust” during the second quarter, supported by growth in both the services and manufacturing sectors.
Summer sunshine and major sporting events also helped boost activity, encouraging consumer spending and providing additional support to parts of the hospitality, leisure and retail sectors.
The latest increase means the UK economy is now 1.2% larger than it was a year ago.
Services, which account for the largest share of the UK economy, performed particularly strongly during the quarter. Manufacturing also contributed to the expansion, while construction returned to growth.
The figures arrive against a challenging international backdrop, with the conflict in Iran creating fresh uncertainty around energy prices, inflation and global trade.
Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), described the second-quarter performance as a sign of welcome resilience in the face of these global pressures.
However, the BCC warned that the headline growth figures should not disguise the challenges businesses continue to face. Higher operating costs, pressure on wages and energy prices, and wider economic uncertainty are still making it difficult for many firms to invest and plan for long-term growth.
The latest data therefore provides a cautiously positive picture. The economy is continuing to expand and several major sectors are showing signs of improvement, but businesses remain under pressure from costs that could limit the strength of the recovery.
For policymakers, the challenge will be turning this short-term resilience into more sustained growth, while creating conditions that give businesses the confidence to invest, recruit and expand.
