The British economy has delivered its strongest quarterly performance in nearly three years, with gross domestic product expanding by 0.6 per cent between April and June, official figures confirmed on Tuesday. The reading, published by the Office for National Statistics, places the United Kingdom ahead of every other G7 nation in Europe and marks a decisive rebound after a sluggish start to the year.
Economists had pencilled in a more modest 0.4 per cent expansion, so the upside surprise sent a ripple of optimism through the City. Sterling firmed against both the dollar and the euro in early trading, while the FTSE 100 added nearly forty points within the first hour of business.
What makes the number particularly encouraging for policymakers is its breadth. Growth was not confined to a single sector or propped up by a one-off statistical quirk. Manufacturing output rose for the third consecutive month, buoyed by renewed demand from European partners and a weaker pound that has made British exports more competitive. The services sector, which accounts for roughly four-fifths of national output, also accelerated, with hospitality, transport and professional services all posting gains.
The private sector, in particular, appears to have shaken off the caution that gripped boardrooms in the first quarter. The latest purchasing managers’ surveys, compiled in the final week of July, show business activity climbing at its fastest pace since the autumn of 2024. New orders are flowing in, hiring intentions have ticked upward, and confidence among small and medium-sized enterprises has reached a two-year high.
Chancellor of the Exchequer welcomed the data in a statement released shortly after publication. “These figures confirm what businesses up and down the country have been telling us on the ground,” the Chancellor said. “Britain is open for investment, our workers are productive, and the foundations we laid in the spring Budget are bearing fruit. We are not complacent, but today is a day to recognise the resilience of the British economy.”
