GDP grew by 0.6%  in second quarter of the year

Britain’s economy grew by 0.6% in the second quarter of the year, marking the second consecutive quarter of growth.

The growth is in line with estimates and indicates that the UK economy is recovering from the recession experienced at the end of last year. The service sector played a significant role in driving this growth, with scientific research, the IT industry, and legal services performing well. Inflation remains under control, and real wages are at their highest level in three years.

ONS Director of Economic Statistics Liz McKeown said: “The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year.

“Growth across the three months was led by the service sector, where scientific research, the IT industry and legal services all did well.

“In June growth was flat with services falling, due to a weak month for health, retailing and wholesaling, offset by widespread growth in manufacturing.”

Anna Leach, Chief Economist at the Institute of Directors, said “It’s good to see the UK cement the first half of the year with a further quarter of strong economic growth. Sadly though, this pace of growth is not set to last: business surveys point to modest momentum through the summer months, no doubt affected by still high interest rates.

“The challenge for government is to firmly lift the UK’s growth performance out of the doldrums. There’re no quick fixes here: we’ll need the government to follow-through on its manifesto commitments to set and stick with long-term infrastructure investment plans. Recent decisions to cancel public sector investments (in transport and AI in particular) sit uneasily alongside promises to embed stable and long-term decision-making. Re-visiting the fiscal debt rule to unlock government-financed investment warrants serious consideration.”