Britain’s economic growth slowed in the second quarter, but a surge in activity linked to record summer temperatures and the World Cup helped the economy outperform expectations in June.
GDP expanded 0.4 per cent between April and June, down from 0.6 per cent in the first quarter, according to the Office for National Statistics. June output rose 0.3 per cent month-on-month, confounding forecasts for no growth, after a revised flat reading in May and a 0.1 per cent contraction in April.
Services drove the June rebound, with food, hospitality, advertising and retail businesses benefiting from the tournament and prolonged hot weather.
The stronger-than-expected figures offer limited comfort as the Iran war threatens to weigh heavily on the outlook. Treasury modelling reportedly puts 2027 growth as low as 0.3 per cent if disruption to the Strait of Hormuz persists through the end of 2026.
Production fell 0.2 per cent and construction dropped 0.1 per cent in June, highlighting the uneven recovery beneath the headline figure.
The ONS said some construction companies reported disruption from extreme heat, while school closures also affected activity. The economy therefore enters the second half of the year with momentum, but faces an increasingly uncertain external shock.
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