UK Economy Surprises with June Growth Amid Energy Price Surge

The UK economy experienced an unexpected growth of 0.3% in June, driven by a respite from energy price surges caused by the Iran war, the start of the men's soccer World Cup, and hot weather.

According to official data released on Thursday, gross domestic product rose by 0.4% in services, partially offsetting falls in industrial production (0.2%) and construction (0.1%).

Economists polled by Reuters had forecast zero growth in month-on-month terms in June.

Thomas Pugh, chief economist at RSM UK, noted that the economy seemed to have weathered the Iran war well, with little sign of consumers or businesses curtailing activity due to higher oil prices. However, he also warned that growth is likely to slow ahead.