UK GDP grew 0.5% in June, and 0.2% between April and June (Q2 2023). The UK services sector saw growth of 0.2% in June, while production output surged 1.8%.

Construction also bounced back from a weak May, up 1.6%, while the overall UK economy is now 0.8% above its pre-pandemic level.

Jonathan Moyes, head of investment research at Wealth Club, commented: “It was pleasing to see the UK produce a more upbeat 0.5% for June, this was much stronger than consensus forecasts, which called for around 0.2% growth. On a quarterly basis, the economy remains in the slow lane, with GDP up 0.2%. This is the sixth quarter in a row where growth was 0.2% or less.”

However, Moyes added: “The UK is by no means out of the woods. June’s hot weather flattered the growth figures, this get out of jail free card will only be played the once. A dismal July and August is likely to weigh on consumer spending for Q3. Add to this the UK’s dominant services sector showing signs of slowing, and it is a challenge to reconcile how the UK economy can escape a recession after such a steep rise in interest rates.”