UK Economy Grows 0.6% in Q2; June Growth Stalls

The UK economy expanded by 0.6% in the second quarter of 2024, meeting expectations. Led by the service sector, particularly technology, scientific research, and legal services, the growth follows a 0.7% increase in the first quarter.

However, growth stalled in June, with the service sector contracting by 0.1%. Factors such as wet weather in April, Screen Actors Guild strikes, and uncertainty ahead of the general election have impacted certain sectors, including retail and TV/film production.

The new Labour government, under Chancellor Rachel Reeves, faces a shallow recession and a £22 billion deficit. Despite the June setback, economists at EY anticipate continued growth for the UK economy, though at a slower pace.

Meanwhile, Switzerland's economy also experienced growth, with GDP increasing by 0.5% in the second quarter. These economic trends reflect the global challenges faced by countries, including Germany post-Ukraine invasion, and the sluggish growth in the Eurozone.