In output terms, the production sector grew by 0.7 per cent, with 1.6 per cent growth in manufacturing. In expenditure terms, there was strong growth in household consumption and government consumption, which was partially offset by a fall in international trade flows in Q2.

The UK’s real GDP rose by 0.2 per cent in Q2 2023, as per the first quarterly estimate.
Monthly estimates revealed 0.5 per cent growth in June, after a 0.1 per cent fall in May.
The production sector grew by 0.7 per cent, with manufacturing at 1.6 per cent.
The GDP deflator rose by 6.7 per cent, and GDP is now 0.2 per cent below its pre-COVID-19 level.

Compared with the same quarter a year ago, the implied GDP deflator rose by 6.7 per cent, this follows growth of 6.5 per cent in the previous quarter. This largely reflects a fall in the implied price of imports which contributes positively to the implied GDP deflator, ONS said in a press release.

The level of quarterly GDP in Q2 2023 is now 0.2 per cent below its pre-COVID-19 level in Q4 (Oct–Dec) 2019. Compared with the same quarter a year ago, GDP is estimated to have increased by 0.4 per cent.

Reacting to the latest GDP data from the ONS, David Bharier, head of research at the British Chambers of Commerce, said: “Today’s data is in line with our Quarterly Economic Forecast which expects just 0.3 per cent for the whole of 2023. Our latest Quarterly Economic Survey shows that most SMEs continue to report no improvement to investment, cash flow, or sales. Worryingly, 41 per cent of businesses are now concerned about the impact of rising interest rates.

“UK businesses are very adaptable, but they are looking for clear direction from the government and the Bank of England, particularly on interest rate policy and a long-term plan to unlock investment.”

Fibre2Fashion News Desk (NB)