UK economy records surprise growth. It may not last

UK economy records surprise growth. It may not last

London CNN — The UK economy grew slightly in the three months to June 30, driven by strong rises in manufacturing and consumer and government spending.

Gross domestic product increased 0.2 percent compared with the previous quarter, the Office for National Statistics said Friday, beating economists’ forecasts for zero growth. In the first quarter, output ticked up by 0.1 percent.

Falling raw material prices contributed to the growth in manufacturing, said ONS director of economic statistics Darren Morgan. An increase in hospitality activities also helped keep the economy moving, as did government expenditure on public administration, defense and health.

However, all-important consumer spending was probably boosted in June by good weather and a flurry of live events, based on anecdotal evidence from businesses cited by the statistics office.

“The UK is by no means out of the woods,” said Jonathan Moyes, head of investment research at Wealth Club, a financial research firm. “Dismal” weather in July and August is likely to weigh on spending by households in the third quarter, he added.

Growing the economy is one of the UK government’s five priorities for this year, set out by Prime Minister Rishi Sunak in early January, although he did not specify by how much.

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