“These figures confirm that the UK’s recovery from recession picked up steam in the second quarter, despite strike action and wet weather causing activity to flatline in June.
“The UK’s strong second quarter owes more to temporary momentum from the large recent falls in inflation and a boost to consumer spending from events like Euro 2024 than from a meaningful improvement in the UK’s underlying growth trajectory.
“This current pace of economic growth is unlikely to be maintained in the second half of the year as weaker wage growth, high interest rates and persistent supply constraints limits output.
“These strong second quarter growth figures may delay the next UK interest rate cut by giving those rate setters still worried about domestic price pressures enough assurances over the strength of the economy to hold off relaxing policy.”
ENDS
Notes to editors:
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