LONDON: Britain’s economy strengthened slightly over the second quarter this year thanks to strong manufacturing in June despite inflation remaining high, official data revealed Friday.
Gross Domestic Product (GDP) grew 0.2% in the April-June period after production expanded 0.1% in the first quarter, the Office for National Statistics said in a statement, according to AFP.
Director of Economic Statistics at the ONS Darren Morgan said that across the quarter as a whole, GDP grew a little with widespread growth in manufacturing, supported by dropping raw material rates.
The economy grew by a stronger-than-expected 0.5% in June, sending the pound higher against the greenback in early London trading.
Output in June was surged especially by strong manufacturing and construction output, the ONS said.
The brilliant performance at the end of the quarter came despite the United Kingdom’s inflation remaining close to 8%, causing the Bank of England (BOE) to last week increase its key interest rate for a 14th time in a row.
Economists warn of risk
Despite Friday’s strong data, economists said Britain remained at risk of recession this year, particularly as the growth numbers could witness the Bank of England keep on raising interest rates.
UK, Economy, Bank of England, output, manufacturing, production, inflation, United Kingdom, data
