UK Economy Slows Amid Ongoing Iran War Energy Price Pressures

The UK economy experienced a slowdown in growth during the second quarter of this year, according to official figures released by the Office for National Statistics (ONS). The GDP expanded by 0.4% between April and June, down from 0.6% in the previous quarter. This slight decrease was expected by City economists.

The ongoing Iran war has pushed up energy prices, which are starting to weigh on growth, according to analysts. Yael Selfin, chief economist at KPMG, noted that consumers have faced a series of shocks but have weathered them well so far. However, she warned that momentum is likely to fade in the second half of the year.

Services output increased by 0.5% during the quarter, while construction rose by 0.3%. Industrial production remained flat. Information and communication businesses saw a strong growth of 2.7%, led by an upturn in computer programming.