UK Economy Defies Iran War Pressures with 0.4% Growth

The UK economy is expected to have recorded another quarter of growth despite supply chain disruptions and rising price pressures linked to the war in Iran. According to data from the Office for National Statistics, gross domestic product (GDP) rose by around 0.4% in the second quarter, covering April to June.

This increase would extend the UK's growth streak after GDP expanded by 0.6% in the first quarter of this year. Rob Wood, chief UK economist at Pantheon Macroeconomics, said that the figures demonstrate the resilience of the economy in the face of the shock caused by the conflict in Iran.

The services sector, which accounts for the largest share of the UK economy, strengthened in May, supported largely by professional services and scientific research and development. However, economists expect the picture to have weakened in June as extreme heat produced mixed effects across the economy and pressure increased on several industries.