UK grows but remains in ‘precarious place’

UK grows but remains in ‘precarious place’

Growth remained sluggish between April and June 2023, with GDP growing by 0.2% in the second quarter of 2023 following a 0.1% rise in the first.

 

Monthly estimates also show that GDP grew by an estimated 0.5% in June 2023 after falling by 0.1% in May and rising by 0.2% in April.

Growth of 1% in the information and communication sub-sector and a 1.6% increase in accommodation and food services made the largest contribution to increasing GDP.

However, these gains were partially offset by a 1% decline in professional, scientific and technical activities, which saw downturns in scientific research and development, architectural and engineering activities, and advertising and market research.

Prime Minister Rishi Sunak welcomed the figures as “good news”, adding “there’s still more work to do, but today’s figures show the plan is working.”

David Bharier, head of research at the British Chambers of Commerce, said the GDP figures were “better news than expected”, but stressed that the UK economy remains in a “precarious place”.

“While the UK remains on course to avoid a technical recession, small movements in one direction or the other won’t mean much for many firms facing the toughest trading conditions in years.”

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