Much brighter news on the economy. The UK grew by 0.2 per cent in the second quarter, according to the latest ONS figures. This is a slight improvement on the first quarter of 2023, when the economy grew by 0.1 per cent.
Separate figures for the month of June alone showed a 0.5 per cent increase in GDP, mainly because of the lack of bank holiday in June, compared to May.
Warmer weather in June may also have helped get consumers out spending again, particularly eating out and watching concerts.
The manufacturing sector – particularly the car industry – accelerated while services also showed growth.
All good news, and while the economy remains sluggish it’s looking as though we can avoid a recession. Jeremy Hunt, the Chancellor, of course hailed the news as positive, saying that the government’s plans are working. Labour, predictably, said the opposite: that low growth proves the economy is still flatlining.
Economists have said there are some positives to be taken, but have also predicted interest rates will continue to rise as there are indications inflation is set to remain high for some time to come.
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