Second-quarter growth beats expectations as consumption and investment offset weaker government spending ahead of a projected H2 slowdown.
UK gross domestic product expanded 0.4% quarter-on-quarter in Q2, matching consensus and accelerating from Q1’s 0.1% gain. Private consumption and business investment led the advance, while government spending acted as a drag.
Analysts had penciled in 0.3% growth for the period. The Bank of England kept rates steady last week, citing persistent inflation risks despite cooling wage pressures.
Growth is expected to ease to 0.2–0.3% in Q3 as tighter monetary policy weighs on activity.