June’s growth outpaced forecasts, but prior-month revisions and weak Q2 momentum limit Bank of England policy shifts.
UK GDP grew 0.3% month-over-month in June, beating expectations, as the services sector expanded 0.4%. The gain followed a flat May reading, revised from an initial 0.1% decline, leaving June as the quarter’s only positive month.
Analysts had anticipated a 0.1% rise, with consensus anchored by sluggish manufacturing and construction data. The services-driven rebound contrasts with a broader Q2 slowdown, where GDP growth averaged just 0.1%.
Markets saw limited reaction, with traders maintaining bets on a Bank of England rate cut in November, as the data did not alter the broader weak growth narrative.