UK GDP rose 0.2% in the second quarter, following an economic recovery in June

The first UK GDP estimate shows that the British economy grew by 0.2% in the second quarter of 2023, after a 0.1% increase in the previous quarter. Compared to the same quarter of the previous year, GDP is expected to increase by 0.4%. The data was published on Friday (11) by the official statistics office.

The results were higher than analysts’ expectations, which predicted a stable quarterly reading and an increase in the annual reading by 0.2%.

According to the ministry, GDP was supposed to grow by 0.5% in June 2023, after an unrevised 0.1% decline in May and 0.2% growth in April.

On the production side, the services sector grew by 0.1% in the quarter, driven by increases in information and communications activities, accommodation and restaurants, and health and social assistance activities. The productive sector grew by 0.7%, and the manufacturing sector recorded an increase of 1.6% in the quarterly comparison.

The largest positive contribution came from transportation equipment manufacturing, particularly motor vehicles, trailers and semi-trailers, which had a strong performance in April and June 2023.

On the expenditure side, real household expenditures increased by 0.7% during the quarter, after stabilizing in the previous quarter. This increase is in line with consumer-facing services, which grew 0.8% last quarter. Within household consumption, the largest contributions to growth in the last quarter came from transportation, entertainment, culture, restaurants and hotels, and energy (gas).

Real government consumption spending rose by 3.1% in the second quarter of 2023, mainly reflecting higher spending on public administration and defense.