UK Economy Shows Resilience Amid Ongoing Challenges

The UK economy is showing resilience in the face of supply chain issues and price pressures linked to the Iran war, according to economists. Figures from the Office for National Statistics are set to show a 0.4% increase in gross domestic product (GDP) for the second quarter, between April and June.

This would mean the economy has continued growing after a 0.6% rise in GDP for the first three months of 2023. Rob Wood, chief UK economist for Pantheon Macroeconomics, said this shows 'the big picture is that the economy has remained resilient to the hit from the war in Iran.'

The services sector, the most dominant in the UK economy, strengthened in May, largely coming from professional services and scientific research and development. Recent data has pointed to factories and manufacturing firms stockpiling in anticipation of supply shortages and price rises.