The British economy unexpectedly grows in the second quarter

Data showed that the British economy grew by 0.2% in the second quarter paving the way for further interest rate increases from the Bank of England, and the performance helped achieve monthly growth of 0.5% in June which was well above expectations of 0.2%.

Manufacturing saw its best quarter since early 2019 excluding an initial rebound from the first COVID-19 shutdown in 2020 with production up 1.6% and business investment up 3.4%.

Finance Minister Jeremy Hunt said that "the measures we are taking to fight inflation have begun to take effect, which means that we are laying the necessary strong foundations for the development of the economy." The British pound rose against the dollar and the euro after the data, as British government bond yields rose.

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