UK Economy Unexpectedly Grows 0.3% In June As World Cup And Sunny Weather Provide Boost

LONDON (VINnews) — Britain’s economy unexpectedly expanded in June, with gross domestic product rising 0.3% from the previous month, official figures showed Thursday, as a combination of sunny weather, the start of the men’s soccer World Cup and a temporary easing of energy price pressures supported activity.

The Office for National Statistics said May’s reading was revised down to show no growth. Economists polled by Reuters had expected flat output in June.

Services output rose 0.4% during the month, more than offsetting declines of 0.2% in industrial production and 0.1% in construction. For the second quarter as a whole, GDP grew 0.4%, slowing from a 0.6% increase in the first three months of the year but still matching forecasts.

The ONS noted that fewer businesses mentioned the conflict in Iran compared with previous months, coinciding with a period of ceasefire that brought a respite from surging energy costs. Some firms also reported that good weather and sports events, including the World Cup, helped trade.

The figures capped another quarter of growth and left Britain on course for the strongest first-half performance among the Group of Seven economies this year. However, analysts cautioned against reading too much into the monthly rebound.

“The latest figures are an outlier,” Sam Kemp of Connection Capital told Reuters, adding that consumer sentiment appeared “distracted” from the underlying reality of the UK economy.

The second-quarter data covered a period of political uncertainty that culminated in the resignation of Prime Minister Keir Starmer in July. New Prime Minister Andy Burnham has pledged to lower costs for businesses and address household living costs against what he has described as a difficult financial outlook.

Finance Minister John Healey said the country had recorded the fastest growth in the G7 so far this year but stressed the need to “double down and drive growth in every postcode.”

Economists expect the pace of expansion to slow in the coming months as the temporary boosts from weather and major sporting events fade and broader pressures remain.