UK Economy Slows Amid US-Iran War and Domestic Unrest

The UK economy slowed in Q2 due to domestic political unrest and the US-Iran war. The Office for National Statistics reported that gross domestic product increased by 0.4 percent in the April-June period, down from 0.6 percent in the first quarter.

Despite these challenges, ONS director of economic statistics Liz McKeown described growth as 'robust'. Services were the main driver of growth, expanding by 0.5 percent, while construction saw an increase and production flattened.

The recent football World Cup was cited as a reason for increased turnover in June, particularly in industries such as alcohol manufacturing and food serving activities.

However, Stuart Morrison from the British Chambers of Commerce cautioned that 'cost pressures are choking long-term business growth'. He emphasized the need for measures to boost trade, investment, and productivity in Finance Minister John Healey's upcoming budget on October 28.