Business

UK economic growth slows between April and June

BBC Business · 2026-08-13

AI SUMMARY

• What happened: The UK's economic growth slowed to 0.4% between April and June 2023, down from 0.6% in the first quarter, driven primarily by the services sector and supported by manufacturing growth. • Why it matters: This slowdown raises concerns about the sustainability of economic momentum, despite positive contributions from favorable weather and major sporting events, which boosted consumer spending in hospitality and leisure sectors. • What to watch next: Analysts will monitor upcoming economic data to determine if the growth trend continues or if the economy can regain its previous pace, focusing on the balance between services and manufacturing growth.

**UK Economic Growth Slows Between April and June**

The United Kingdom's economic growth experienced a slowdown in the second quarter of 2023, expanding by 0.4% from April to June, according to data released by the Office for National Statistics (ONS). This growth rate aligns with economists' expectations but marks a decline from the 0.6% growth recorded in the first quarter of the year.

The services sector played a significant role in driving growth during this period, contributing positively to the overall economic performance. Additionally, the manufacturing sector also saw an uptick, indicating a mixed yet stable economic landscape.

The ONS highlighted that various businesses noted the impact of favorable weather conditions and significant sporting events on their performance in June. Notably, the men's football World Cup, which commenced in mid-June, led to increased patronage at hospitality venues that broadcast the matches. This surge in customer activity reflects the potential influence of major sporting events on local economies, particularly in sectors reliant on consumer spending.

June also marked the onset of the summer's first heatwave, which may have contributed to increased outdoor activities and spending in leisure and hospitality sectors. The combination of good weather and high-profile sporting events appears to have created a conducive environment for economic activity, particularly in service-oriented businesses.

Despite the positive contributions from these sectors, the overall slowdown in growth raises questions about the sustainability of the current economic momentum. Analysts will be closely monitoring future data to assess whether this trend continues or if the economy can regain its previous pace of growth.

As the UK navigates through the remainder of 2023, the balance between growth in services and manufacturing, alongside external factors such as weather and events, will be crucial in shaping the economic outlook.

Source: BBC Business
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