UK economy warms up thanks to June heatwave sparking rise in eating out with 0.5% monthly increase and 0.2% growth in second quarter … but will washout July and August bring more gloom?

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<p>Britain’s June heatwave helped warm up the economy as new figures today showed better-than-expected growth.</p>
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<p>The UK economy grew by 0.2 per cent in the second quarter of the year – with a 0.5 per cent in June alone.</p>
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<p>The Office for National Statistics (ONS) said June’s sunny weather had encouraged Britons to eat out and drink more – boosting GDP.  Increases in manufacturing and IT services also helped the economy.</p>
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<p>This year saw the hottest June on record, with the Met Office recording an average temperature of&nbsp;15.8C (60.4F). The previous high of 14.9C (58.8F) was recorded in 1940 and 1976.</p>
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<p>But the washout July that followed suggests that the third quarter figures may not benefit from such a seasonal boost.&nbsp;</p>
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<p>Economists had expected GDP to grow by 0.2&nbsp;per cent in June and 0.0&nbsp;per cent in the quarter as a whole. It grew by 0.1&nbsp;per cent in the first quarter of the year.</p>
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<p>The news is a welcome boost for the Government, which has made fighting inflation its top priority, even if high interest rates sparked a drop in growth.</p>
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<p>The ONS said: ‘The largest positive contribution to growth was from the information and communication sub-sector which grew by 1.0 per cent, with the biggest increases in motion picture, video and TV programme production, and computer programming, consultancy and related activities.&nbsp;</p>
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<p>’The next largest positive contribution to growth was from accommodation and food service activities which increased by 1.6 per cent.</p>
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<p>’This was driven by food and beverage services which saw a particularly strong month in June, with anecdotal evidence from the monthly business survey suggesting that good weather and an increase in live events boosted turnover for businesses.'</p>
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<p>Chancellor Jeremy Hunt said: ‘The actions we’re taking to fight inflation are starting to take effect, which means we’re laying the strong foundations needed to grow the economy.</p>
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<p>’The Bank of England are now forecasting that we will avoid recession and, if we stick to our plan to help people into work and boost business investment, the IMF have said over the longer-term we will grow faster than Germany, France and Italy.'</p>
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<p>However, quarterly GDP is still 0.2 per cent below where it was in the final three months of 2019, before the Covid-19 pandemic hit and forced the country into lockdown.&nbsp;</p>
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<p>ONS director of economic statistics Darren Morgan said: ‘The economy bounced back from the effects blastautoservice.com of May’s extra bank holiday to record strong growth in June. Manufacturing saw a particularly strong month with both cars and the often-erratic pharmaceutical industry seeing particularly buoyant growth.</p>
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<p>’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.</p>
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<p>’Construction also grew strongly, as did pubs and restaurants, with both aided by the hot weather.'</p>
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<p>Businesses told the ONS that their output had increased in June to make up for the extra bank holiday in May.</p>
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<p>The statisticians found that the human health and social work sector had weighed on GDP in June, shrinking by 0.8 per cent. There were four days of strikes by junior doctors during the month although nurses had not been on strike.</p>
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<p>The new data puts the UK on a better course to avoid falling into a recession, which is defined as two quarters in a row where GDP shrinks.</p>
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<p>However, forecasts from the Bank of England see growth remaining sluggish for years to come.</p>
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