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UK economy posts surprise second-quarter growth as households kept spending


Skyline view of the City of London financial district.

Mike Kemp | In Pictures | Getty Images

LONDON — The U.K. economy beat expectations with 0.2% growth in the second quarter, boosted by household consumption, the Office for National Statistics said Friday.

Economists polled by Reuters had expected the U.K. GDP to flatline in the second quarter, after eking out surprise growth of 0.1% in the first quarter, as the Bank of England’s tightening of monetary policy and persistent inflation began to constrain demand.

The economy expanded by 0.5% in June, beating a forecast of 0.2% growth. It follows monthly GDP growth of 0.1% in May and 0.2% in April.

Output was bolstered by 1.6% growth in manufacturing and 0.7% in production in the second quarter, while services grew by 0.1%.

The ONS noted strong growth in household and government consumption in terms of expenditure. Both faced price pressures in the quarter, though this moderated from the previous three-month period.



This story originally appeared on CNBC

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