The UK economy expanded by 0.4% between April and June, marking a slowdown from the 0.6% growth recorded during the first quarter of the year.
The latest figures from the Office for National Statistics (ONS) were broadly in line with economists’ expectations, suggesting that the economy continued to grow but at a more modest pace during the second quarter.
Manufacturing Provides a Boost
Manufacturing was the strongest contributor to the expansion during the three-month period, helping offset weaker momentum elsewhere in the economy.
The figures indicate that industrial activity played an important role in keeping overall growth positive as the UK economy entered the middle of the year.
June Benefited From Favourable Conditions
The ONS noted that some businesses believed unusually good weather and major sporting events may have provided an additional boost to economic activity in June.
The potential impact highlights how short-term changes in consumer behaviour and business activity can influence monthly economic performance, even when broader economic conditions remain subdued.
Growth Remains Positive but Slower
Although the 0.4% expansion means the economy continued to grow, the reduction from the previous quarter points to a loss of momentum.
The figures will therefore be closely watched by businesses, policymakers and investors as they assess the strength of the UK economy and its prospects for the remainder of the year.
Manufacturing Takes Centre Stage
The second-quarter performance also underlines the importance of manufacturing to the latest expansion.
With economic growth moderating from the start of the year, the sector’s contribution could prove significant as policymakers assess whether the economy is maintaining a sustainable recovery or beginning to face renewed weakness.
