MNI BRIEF: Better Weather Helps UK Economy Grow In Q2

The UK economy bounced back in June from the run of bank holidays in May, recording a strong end to the quarter. GDP grew 0.5% m/m. On the quarter as a whole, growth came in at 0.2%, better than expectations and beating the Bank of England's Q2 forecast by 0.1 percentage points.

According to the Office for National Statistics, manufacturing saw a particularly strong month with both cars and the pharmaceutical industry seeing particularly buoyant growth.

“Services also had a strong month with publishing and car sales and legal services all doing well, though this was partially offset by falls in health, which was hit by further strike action," Darren Morgan, Director of Economic Statistics at the ONS said. “Construction also grew strongly, as did pubs and restaurants, with both aided by the hot weather.

Overall, the slightly better than expected data will do little to change thinking at the Bank of England, with policymakers certainly focused more on the labour and inflation data due next week.