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 man has been arrested by police investigating a “significant” wildfire that triggered a major incident in Northern Ireland.
More than 100 firefighters and 15 fire appliances were deployed on Saturday to Sandbank Road, Hilltown, to tackle the blaze which is believed to have been caused deliberately, fire chiefs said.
Northern Ireland Fire and Rescue Service (NIFRS) said the fire had a front of approximately two miles “including a large area of forestry close to property”.
It was extinguished at 2.53am on Sunday and the major incident status lifted, the NIFRS said.
“The cause of this fire is believed to have been deliberate,” chief fire and rescue officer Aidan Jennings said.
The Police Service of Northern Ireland said on Sunday that a 25-year-old man had been arrested “on suspicion of arson being reckless as to whether life would be endangered, and non-related driving offences”.
“He remains in custody at this time as enquiries continue into the circumstances surrounding the fire,” the force added.
The wildfire on Sandbank Road, Hilltown. Pic: Sky Watch NI
More than 100 firefighters were at the scene of the fire. Pic: Sky Watch NI
Various fires erupted across England this week amid uncharacteristically warm and dry conditions for the time of year.
On Saturday, helicopters were deployed to tackle Scotland’s fourth wildfire this week, with police saying a blaze “which started in the Newton Stewart area has spread northwards and is expected to reach the Loch Doon area of East Ayrshire around 12am on Sunday”.
Police Scotland added: “As a precautionary measure members of the public are asked to avoid the Loch Doon area and anyone who may be camping in the area is advised to leave.”
Moors Valley Country Park blackened by fires this week
Elsewhere in England, Devon and Cornwall Police said they were assisting the fire service with temporary road closures on the A30 in the Bolventor area as they tackle “a number of fires” on moorland.
In Dorset, Moors Valley Country Park was forced to close after multiple wildfires broke out there on Wednesday.
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Separate incidents were then reported at Upton Heath in Poole on Wednesday, and nearby Canford Heath in the early hours of Thursday.
Friday was officially the warmest day of the year so far – with temperatures in the south of England reaching 23C (73.4F) – the highest since 21 September last year, according to the Met Office.
The weather conditions triggered a “severe” wildfire rating for parts of the UK on Tuesday.
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