UK GDP bounced in June, helped by Gulf ceasefire, World Cup and sunshine

[LONDON] Britain’s economy unexpectedly grew in June as companies were boosted by a respite in the surge in energy prices caused by the Iran war, the start of the men’s soccer World Cup and hot weather, official data showed on Thursday (Aug 13).

Gross domestic product rose by 0.3 per cent from May when it was revised down to show no growth, the Office for National Statistics said.

Economists polled by Reuters had forecast zero growth in month-on-month terms in June.

The ONS said fewer firms mentioned the conflict in Iran than in previous months, coinciding with a period of ceasefire in the conflict.

It also said some businesses reported that good weather and sports events helped them in June.

The growth in June was because of a rise of 0.4 per cent in services and was partially offset by falls of 0.2 per cent in industrial production, and 0.1 per cent in construction.

For the second quarter – covering the three months to the end of June – the economy grew by 0.4 per cent, slowing from a rise of 0.6 per cent in the first three months of the year but still a stronger than usual pace of growth.

The Reuters poll had pointed to a 0.4 per cent expansion from the first three months of the year.

The second quarter covered a period in British politics marked by uncertainty over the grip on power of Keir Starmer who eventually resigned as prime minister in July.

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Despite the strong performance in the first half of 2026, Britain’s economy is expected to slow in the coming months.

New Prime Minister Andy Burnham has said his government will do what it can to lower costs for business against the backdrop of a “difficult financial ​outlook” and he has also pledged to address the cost of living for households.

“We’ve seen the fastest growth in the G7 this year, but we now need to double down and drive growth in every postcode,” finance minister John Healey said in response to the data. REUTERS