Monthly figures were up above forecast.
UK GDP growth lifted thanks to heatwave and World Cup
The combination of warm weather and the World Cup stimulated the UK economy more than expected in July. The Office for National Statistics today reported that GDP grew by 0.3% in the month, above the forecast 0.2%, making growth of 0.6% for the three months to July.
The services sector saw good growth in July and the ONS picked out engineers, accountants and lawyers as especially busy, while the construction sector also saw a good recovery in activity.
Production and manufacturing fell back but they are relatively small parts of the overall economy, and the picture presented by today’s data suggests that the third quarter is building on the momentum seen in the second quarter rather than reverting to the weakness seen in the first quarter.
These are reassuring figures but Sterling responded with only a small rise which may be due to the fact that the growth was influenced by unusual factors like the World Cup and the heatwave.