0.6% growth marks the continuation of the UK economy’s recovery.
As UK continues to recover from the recession that hit at the end of last year, the UK’s GDP increased 0.6% from April to June.
This follows a 0.7% growth in the first quarter of this year, and the most recent data was consistent with predictions.
The information technology (IT), legal, and scientific research industries were the driving forces behind the expansion of the services sector.
Despite a decline in production in both manufacturing and construction from April to June, the service sector continued to be the UK’s largest economic driver.
Despite experiencing some slowdown in the latter half of last year, the UK economy has now expanded well for two quarters, according to Liz McKeown, director of economic statistics at the Office for National Statistics, who provided the findings.
A brief and minor recession hit the British economy last year.
When business spending and investment fall for two consecutive quarters, economists call it a recession.
June saw no change in the expansion of gross domestic product (GDP), a crucial indicator of all economic activity including governments, businesses, and individualsof UK.
Although the services sector contributed to economic growth throughout the quarter, its impact was most noticeable in June.
Junior doctors went on strike, which slowed progress. During the period from June 27th to July 2nd, 61,989 appointments were canceled due to industrial action by junior physicians, according to NHS England.
The second part of 2024 might see a slowdown in growth, according to economists.
“No doubt affected by still high interest rates,” said Anna Leach, chief economist of the Institute of Directors, when asked why companies were reporting low activity for the summer months.
For the first time in four years, the Bank of England decreased interest rates earlier this month, in August, to 5%.
Getting the UK’s growth performance out of its slump is a problem for the government, according to Ms. Leach.
“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.”
After 14 years of Conservative rule, the economy was a major issue in the general election, which Labour won by a wide margin.
Sir Kier Starmer, prime minister, promised to “take the brakes off Britain” and unveiled several initiatives in the King’s Speech, one of which was a reform of the planning system to facilitate the construction of new homes and public works.
Rachel Reeves told reporters: “The new government is under no illusion as to the scale of the challenge we have inherited after more than a decade of low economic growth.”
While the results for GDP “are yet further proof that Labour have inherited a growing and resilient economy,” shadow chancellor Jeremy Hunt spoke out against them.
