UK economy ‘grows strongly’ for second quarter running, but stalls in June – business live

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10.07 BST A quick summary Britain’s economy has extended the recovery from recession last year after recording growth of 0.6% in the three months to June. Figures from the Office for National Statistics (ONS) show gross domestic product (GDP) continued to grow in the second quarter, after growth of 0.7% in the first three months of 2024. City economists had forecast growth of 0.6%. Liz McKeown, the ONS director of economic statistics, 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.” However, the UK economy did not grow in June. The ONS said there were anecdotal reports from businesses that general election uncertainty, and public sector strikes, hit activity in June. GDP per head of population grew by 0.3% in the quarter, but was still lower than a year ago – and before the Covid-19 pandemic starter. Chancellor Rachel Reeves said economic growth was the Labour government’s “national mission”… … her predecessor, Jeremy Hunt, said the data were “further proof that Labour have inherited a growing and resilient economy”. The UK is likely to be the third-fastest G7 economy in the second quarter of 2024, with only Canada yet to publish GDP data. Since the pandemic, though, it’s the second slowest G7 member: Over Q2, economy grew 0.6% - on top of 0.7% for Q1. Puts UK economy 2.3% larger than its pre-pandemic level (not great in G7 terms). Note - Germany will report overhauled GDP estimates shortly (of the kind that produced big upward revisions to other countries' GDP) pic.twitter.com/wOhocMD0IV — Andy Bruce (@BruceReuters) August 15, 2024 Economists welcomed the GDP report. Deutsche Bank said the near-term economic outlook has improved, while PWC predicts the second half of 2024 will be strong too. But, the New Economics Foundation said the government needs to invest more in infrastructure, to support growth.