UK economy grows in June on services, World Cup boost

Britain's economy expanded more than expected in June, according to official data released on Thursday. Gross domestic product rose by 0.3% from May, when it was revised down to show no growth. Economists had forecast zero growth for the month.

The Office for National Statistics attributed the uptick to a 0.4% rise in services output, which was partially offset by declines in industrial production and construction. The agency noted that fewer businesses mentioned the conflict in Iran than in previous months, coinciding with a period of ceasefire. It also said some firms reported that good weather and sports events, including the men's soccer World Cup, helped their performance in June.

For the second quarter as a whole, the economy grew by 0.4%, slowing from a 0.6% expansion in the first three months of the year but still matching expectations. The period was marked by political uncertainty, with Keir Starmer eventually resigning as prime minister in July.

Despite the stronger-than-expected first half, the outlook is cautious. New Prime Minister Andy Burnham has pledged to lower costs for businesses and address household living costs against a "difficult financial outlook." Finance Minister John Healey said the UK has seen the fastest growth in the G7 this year but stressed the need to "drive growth in every postcode."