UK Economy Surprises with 0.3% Growth in June Amid Energy Price Reprieve

The UK economy experienced an unexpected growth of 0.3% in June, driven by companies benefiting from a temporary reprieve from high energy prices caused by the Iran war.

The start of the men's soccer World Cup and hot weather also contributed to the growth, with services rising by 0.4%, partially offsetting falls in industrial production and construction.

Economists polled by Reuters had forecast zero growth for June, but Thomas Pugh, chief economist at RSM UK, noted that companies seem to have 'weathered the Iran war extremely well'.

However, looking ahead, growth is likely to slow, with some analysts warning of a possible slowdown in the second half of the year due to the revival of the Iran war and speculation about tax increases.