The UK economy saw modest growth in June, though conditions remain volatile.
According to new figures from the Office for National Statistics (ONS), GDP (gross domestic product), a key measure of economy growth, is estimated to have risen 0.4% month-on-month in June, ahead of expectations, following a 0.1% fall in May.
It reflects, across key sectors, services output growing 0.3% month-on-month, construction output increasing by 0.3%, and production output rising by 0.7%.
In the quarter, GDP rose 0.3%, also beating market expectations, but lagging behind growth seen during the first three months of the year.
Ben Jones, CBI lead economist, said: “A modest rebound in June brought Q2 to a positive close — but today’s figures confirm that the strong growth seen earlier this year was a one-off and underlying conditions remain fragile.
“With business costs mounting, the labour market cooling, investment intentions weakening and confidence generally subdued, the UK is walking a narrow path between resilience and stagnation.
“Policy uncertainty in the run-up to the Autumn Budget risks tipping the balance. With the business tax burden already at a 25-year high, the government must chart a steadier course by ruling out further tax rises and prioritising policies that can quickly lift investment and productivity.”
