UK economy grows by 0.2% in second quarter of 2023

11 Aug 2023

The UK's GDP expanded by 0.2% in the second quarter of the year, according to the latest figures from the Office for National Statistics (ONS).

This follows growth of 0.1% in the first quarter of 2023 and beat forecasts which predicted no growth between April and June.

In June, the economy fared better than expected, with growth of 0.5%. That follows the GDP fall of 0.1% in May, and growth of 0.2% in April.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said the news was 'better than expected' but warned 'the UK economy remains in a precarious place'.

Mr Bharier continued: 'While the UK remains on course to avoid a technical recession, small movements in one direction or the another won't mean much for many firms facing the toughest trading conditions in years.

'Our latest Quarterly Economic Survey shows that most SMEs continue to report no improvement to investment, cash flow or sales. Worryingly, 41% 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.'

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