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The UK economy was more resilient than expected in the second-quarter, seeing quarter-on-quarter growth of 0.2%, helped by a markedly better-than-forecast outturn for June.
According to the Office for National Statistics on Friday, the UK economy grew 0.2% quarter-on-quarter in the three months to June, following a 0.1% climb in the first-quarter. It easily topped the FXStreet-cited consensus, which had forecast the UK economy to flatline.
Year-on-year, the UK economy expanded 0.4%, beating expectations of a 0.2% climb, which was also the pace of annual growth in the first-quarter.
‘In output terms, the services sector grew by 0.1% in the quarter, driven by increases in information and communication, accommodation and food service activities, and human health and social work activities; elsewhere, the production sector grew by 0.7%, with 1.6% growth in manufacturing,’ the ONS said on the second-quarter.
‘In expenditure terms, there was strong growth in household consumption and government consumption, which was partially offset by a fall in international trade flows in the second quarter.’
In June alone, there was chunky GDP growth beat. The economy rose 0.5%, shaking off the impact of industrial action, after an unrevised 0.1% decline in May and a 0.2% rise in April. An expansion of 0.2% was expected for June, according to FXStreet.
‘A range of businesses cited the additional bank holiday in May as a reason for increased output in June 2023 compared with May 2023,’ the ONS said.
Industrial production surged 1.8% on a monthly basis in June, soaring past the expected growth of 0.1%. Production had declined 0.6% in May from April.
On an annual basis, output rose 0.7% in June, following a 2.1% fall in May. It was the first annual rise in industrial output since September 2021. Output had been expected to fall 1.1% on-year, according to FXStreet.
The data supported the pound. Sterling climbed to $1.2709 after the readings, from $1.2683 beforehand.
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