UK economy grows in the second quarter than expected, 0.3%

In the second quarter, the UK economy expanded more than expected, 0.3%, in the second quarter, According to preliminary estimates From the UK cabinet by national statistics on Thursday.

Economists interviewed by Reuters expected the country’s gross domestic product (GDP) to expand 0.1% over the period, which is 0.7% compared to the bumper’s growth in the first quarter.

Month per month’s economy grew by 0.4% in June After reducing 0.1% in MayFailed to get rid of the effects of tariffs on the US and the uncertainty of business.

“The economy was weak in April and May, and some activity was transferred in February and March ahead of the coat of arms and changes in tariffs, but then resumed in June,” Liz McCown commented on Thursday. Creating on the stamp indicates a property tax.

In the broader second quarter, the height has led the services, and computer programming, health and leasing cars are gaining momentum. Construction has also increased, while production has fallen slightly. Quarter growth was also increased due to updated source data in April, which, although still showing the reduction, was better than initially estimated, said ONS.

“Services also increased in June with scientific scientific development, engineering and sales of cars that have a strong month. In the framework of the resumed production, the production of electronics was particularly good,” said McCaun.

The British pound was equal against the dollar after the data output at $ 1.3577.

After the strong start of the year, the UK economy “threw” in the second quarter, said George Brown, senior economist Schroders, said in electronic comments after the data was released.

“Most of the slowdown reflects the drop in production after the 1 quarter tariff front.

“However, the hopes for a sharp rebound will probably be pressed. The labor market is mitigated, and the power restrictions mean that even insincere growth creates pressure on inflation. Given this, we expect the Bank of England to support rates for the rest of the year,” he said.

Recent growth data come a few days after the Bank of England has reduced interest rates from 4.25% to 4%, and politicians weigh sticky inflation – which in June grew up to hotter than 3.6% expected with 3.4% in May – Against the cooling job market and unsuccessful growth.

In the statement Last week, BOE stated that the monetary policy committee “is still focused on squeezing any existing or new sustainable inflation pressure to resist inflation to its 2% target.”

He also noted that the main growth of GDP in the UK “remains muted, in accordance with the long, gradual weakening in the labor market.”

“It is assumed that the economy shows that there has been insufficient and geopolitical risks around economic activity in the economy, although the uncertainty of trade policy has decreased slightly,” the bank said, given the UK trade agreement with the US and the basic export tariff to the state.

The IPC was initially divided into a decrease or content of interest rates, and four members who wished to be rates for four more voting, and one voted on politics for a greater decline in the 50-base point. The Committee then held a second round of voting to come to most decisions to reduce rates by 25 basic points.

According to Bow Governor Andrew Bailey, the voting is a reflection of a “finely balanced situation” with which the IPC is facing the factors that manages the monetary policy.

“There is an increase in the risk to inflation, and especially in whether this increase in the present tense is still slightly more than we expect. We don’t expect it really but isn’t it?” In an interview with Bailey, Ritika Gupta CNBC told. “But … this must be established in the context of the working conditions that seem to be mitigated.”