Data published by the Office for National Statistics (ONS) showed that the GDP remained unchanged in June after rising by 0.4% in May. Meanwhile, in the second quarter, economic growth slowed to 0.6%, as expected, from 0.7% in the first quarter. On an annual basis, GDP grew by 0.9% in the second quarter, as expected, after an increase of 0.3% in the first quarter. The latest increase was the strongest since the third quarter of 2022.
The ONS said services output fell by 0.1% in June, following five consecutive months of growth, with 7 of the 14 services subsectors falling in June. The largest negative contribution came from the wholesale and retail trade; repair of motor vehicles and motorcycles subsector, which fell by 1.0%. This was driven by a fall of 1.2% in the retail trade, except of motor vehicles and motorcycles industry, following growth of 2.9% in May. The largest positive contribution came from professional, scientific and technical activities, up 1.0%, its fifth consecutive monthly growth, mainly caused by growth of 4.5% in legal activities. Output in consumer-facing services fell by 0.7% in June, following growth of 0.7% in May (revised down from +0.8%). The main causes of the decline were falls of 1.2% in retail trade, except of motor vehicles and motorcycles, a 3.3% fall in the other personal service activities industry and a 4.0% decline in accommodation. The largest positive contribution came from buying and selling, renting and operating of own or leased real estate, which grew by 0.3%. Meanwhile, industrial production increased by 0.8%, accelerating compared to May (+0.3%, revised from +0.2%). Economists had expected an increase of only 0.1%. Manufacturing production rose by 1.1% after an increase of 0.3% in May (revised from +0.4%). This marked the strongest expansion since February, with growth seen in 9 out of 13 subsectors. Consensus estimates suggested an increase of 0.1%.
The data also showed that in annual terms, GDP grew by 0.7% in June, slowing compared to May (+1.4%). Economists had expected the economy to expand by 0.8%.