UK economy grows by 0.2%, ONS figures show
The UK economy grew slightly in the three months to June, according to official estimates.
Gross domestic product (GDP) increased by 0.2% in the second quarter of the year, the Office for National Statistics (ONS) said. In June alone it rose by 0.5%.
It comes after a rate of 0.1% was recorded in the first quarter, the lowest amount possible to still be classed as growth.
Experts said the economy had bounced back in June following a dip the previous month, when an extra bank holiday was held to celebrate the King’s coronation.
Darren Morgan, the ONS’s director of economic statistics, said: “Manufacturing saw a particularly strong month with both cars and the often-erratic pharmaceutical industry seeing particularly buoyant growth.
“Services also had a strong month with publishing and car sales and legal services all doing well, though this was partially offset by falls in health, which was hit by further strike action.”
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Sky’s business correspondent Paul Kelso discusses the figures
He added: “Construction also grew strongly, as did pubs and restaurants, with both aided by the hot weather.”
However four days of strikes by junior doctors weighed on GDP in June.
The Bank of England has forecast that the UK will likely avoid recession in 2023 but suggested the economy will effectively flatline for the next few years.
It recently hiked interest rates for the 14th time in a row to 5.25% as it attempts to bring down inflation.
The rate of inflation fell by a bigger-than-expected drop in June but still remains high at 7.9%.
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Chancellor Jeremy Hunt told Sky News last week that the UK, along with Europe, the US, Canada and Japan, were “all in a low growth trap that we need to get out of”.
He added: “What you’ll see from me in the autumn statement is a plan that shows how we break out of that low growth trap and make ourselves into one of the most entrepreneurial economies in the world.”
‘Strong foundations’
The new data puts the UK on a good course to avoid recession this year, which is defined as two quarters in a row when GDP shrinks.
However, there are still concerns about the longer-term outlook for the economy. A report by thinktank the National Institute of Economic and Social Research warned earlier this week there was a “60% risk” of a recession in 2024.
It said the UK was also set to experience five years of “lost” economic growth, while “elevated housing, energy and food costs” would likely continue into next year.
Commenting on the latest figures, Mr Hunt said: “The actions we’re taking to fight inflation are starting to take effect, which means we’re laying the strong foundations needed to grow the economy.
“The Bank of England are now forecasting that we will avoid recession, and if we stick to our plan to help people into work and boost business investment, the IMF have said over the longer-term we will grow faster than Germany, France and Italy.”
‘Economy isn’t working’
Labour’s Shadow Chancellor Rachel Reeves said the figures showed that “growth in the economy is still on the floor”.
She added: “13 years of economic mismanagement under the Conservatives has left Britain worse off and trapped in a low growth, high tax cycle.”
The Joseph Rowntree Foundation also said the modest GDP growth “means little to the 7.3 million low-income families who right now are going without essentials like heating, eating and adequate clothing.”
The charity’s chief economist Alfie Stirling added: “For too many people, and too many places, the economy simply isn’t working.”
TUC general secretary Paul Nowak said: “The chancellor is asleep at the wheel while our economy is going nowhere.
“Stagnant growth puts jobs at risk and holds down pay and conditions for those who remain in work.”
ONS publishes data every month on GDP, which aims to measure the sum total of everything produced in the economy.
However, the indicator has faced criticism for failing to include some parts of the economy, such as the contribution of unpaid carers.
A body has been found in the search for 23-year-old runner Jenny Hall.
She was last seen leaving her home in Barracks Farm, County Durham, in her car just after 3pm on Tuesday.
Police said there are not thought to be any suspicious circumstances after a body was found in a very remote area in Teesdale on Sunday morning, five days after she went missing.
Jenny Hall went missing on Tuesday. Pic: Durham Constabulary
“We’re sorry to report that officers searching for missing woman Jenny Hall, have sadly found a body,” Durham Constabulary said in a statement.
“Officers carried out an extensive search alongside specialist partners and have been working around-the-clock to locate Jenny after she went missing on February 18.
“The body was found in a very remote area in Teesdale just after 9.30am today.
“Formal identification has yet to take place. Jenny’s family have been notified and are currently being supported by specialist officers. They have asked for privacy at this devasting time.
“It is not believed there are any suspicious circumstances and a file will be prepared for the coroner.”
A major police search was launched after Ms Hall’s disappearance.
Her car, a red Ford Focus, was found on Wednesday parked on the B6278, near remote moorland between Eggleston and Stanhope.
Mountain rescue teams, specialist drones and sniffer dogs had been combing the Hamsterley Forest and the surrounding areas, where there are a number of running trails, this week.
Digital intelligence officers also carried out extensive inquiries into Ms Hall’s mobile phone, smart watch and running apps.
A fresh amber weather warning for heavy rain has been issued by the Met Office – with much of the UK already on alert for high winds and showers.
Northern Ireland, Scotland and the UK’s west coast and the Midlands have yellow warnings for wind on Sunday – meaning the possibility of transport delays and short-term power cuts.
There are also rain warnings in place for several parts of western UK.
The new amber warning has been issued for rain in south and central Wales and is in force from 3pm on Sunday to 6am on Monday.
An amber warning means danger to life from floodwater, homes and businesses are likely to be flooded, and there is a chance some communities will be cut off.
Winds across the west of the UK will increase throughout the morning with gusts up to 70mph in exposed areas, the Met Office said.
Zoe Hutin, a meteorologist at the forecaster, said Sunday is expected to be the “worst day” before conditions improve.
“The wind warning itself for the mainland UK ends at 6pm, but we can expect to continue to see quite blustery conditions even into the evening as the mainland rain itself pushes through.”
She added: “By the time people get up on Monday, we’ll still have some of the residual rain from that front in the far south-east of the country, and quite cloudy across England as well.
“But actually elsewhere, it could be a decent start.”
The Met Office’s yellow weather warnings for much of England and Scotland came into force at 6am and are expected to run until 6pm on Sunday.
A separate yellow warning for Northern Ireland came into force at 3am and runs until 3pm.
Rain and high winds are expected across the west of the UK
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People who have noticed some slightly higher temperatures the last couple of days may be dismayed at the latest predictions.
“Through the week, those temperatures are trending back down,” Ms Hutin said.
“And so it will be getting cooler each day, but they will actually just be recovering to around average for the time of year. So it won’t be cold.
“It will just be returning back to where we would expect to be for this time of February.”
Sir Keir Starmer has said the United States “is right” about the UK and Europe needing to take more responsibility for defence and security.
The prime minister, speaking at the Scottish Labour conference in Glasgow on Sunday, said he is clear Britain “will take a leading responsibility” in protecting the continent.
“Instability in Europe always washes up on our shores,” he said.
“And this is a generational moment. I’ve been saying for some time that we Europeans – including the United Kingdom – have to do more for our defence and security. The US is right about that.”
He added “we can’t cling to the comforts of the past” as it is “time to take responsibility for our security”.
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Donald Trump sparked an emergency meeting of European leaders this week after he said European NATO members should spend more on defence, while the US should spend less.
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Sir Keir has said he will set out a path for the UK to spend 2.5% of GDP on defence, up from the current 2.3%, but has not indicated when that will be.
It is believed he may announce the details when he visits Mr Trump in Washington DC on Thursday, bringing forward the announcement that was expected in the spring when a defence spending review is published.
The prime minister reiterated the UK will “play our role” if required in Ukraine following a peace agreement after he earlier this week said the UK would send troops to be part of a peacekeeping force.
Sir Keir will meet Donald Trump in the White House on Thursday. Pic: AP
However, his comments caused a row with Germany and Italy who said it was premature to commit to boots on the ground, although France agreed with the UK.
Sir Keir said: “As we enter a new phase in this conflict, we must now deepen our solidarity even further.”
He added: “There can be no discussion about Ukraine without Ukraine.
“And the people of Ukraine must have long-term security.”
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This week has seen US officials meet their Russian counterparts in Saudi Arabia to discuss Ukraine – which has been met with indignation by Ukrainian President Volodymyr Zelenskyy as none of his team were invited.
No Europeans were invited either, sparking concern the US is pandering to Vladimir Putin.
Sir Keir has promised Mr Zelenskyy he will make the case for safeguarding Ukraine’s sovereignty when he meets with Mr Trump, who has called the Ukrainian president a dictator.
Mr Trump also said Sir Keir and French President Emmanuel Macron, who will visit the White House too this week, “haven’t done anything” to end the war.
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