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Thu, 13 Aug 2026

Thu, 13 Aug 2026 UK economy grows but experts warn of challenging months ahead

Hot weather and the men's football World Cup boosted the economy but the Iran war may weigh on growth

* The UK economy grew by 0.4% between April and June, in line with market expectations.
* Growth was driven by temporary factors such as good weather and sporting events, particularly the World Cup.
* Some sectors performed well, including computer programming, advertising, and pharmaceuticals.
* Energy prices could remain volatile due to the Middle East conflict, which has affected costs for businesses like Clarity Plastics.
* Economists warn that growth may slow down in the coming months, with some predicting a "more painful deceleration".
* The government's aim is to make the country more resilient and drive growth in every postcode.
* Opposition parties have criticized the government's handling of the economy, with Labour accusing it of mismanaging the economy and leaving it weak and vulnerable.