Office for National Statistics: Hot weather helped the British economy grow 0.2% in April–June

The British economy surprised everyone by growing in the second quarter of the year. This was mostly due to a strong rebound in June, when many businesses, especially in the leisure industry, did well because of the warm and stable weather.

Read More: July saw China’s first deflation since February 2021: How will it influence global economy and common people?

In the three months between April and June, the economy grew by 0.2%, according to the Office for National Statistics. That was more than the 0.1% seen in the first quarter, and it was more than economists expected, since they thought there would be no change.

The good result was due to a 0.5% monthly rise in June, when the hot weather helped pubs and restaurants. June was the warmest month ever recorded in Britain.

In the past few months, when interest rates went up, the British economy held up a little better than expected. A recession, which was generally expected, was avoided.

The Bank of England hiked its benchmark interest rate earlier this month to a new 15-year high of 5.25 percent and suggested that it might stay high for a while to bring down extremely high inflation.

But some people, especially those with tight budgets, are hoping that the bank won't end up raising its main rate to 6% because inflation is finally coming back down to the bank's goal of 2%. Figures for June showed that inflation dropped more than expected, to 7.9%. This made it less important to move as quickly as before.

Central banks worldwide have implemented measures to increase borrowing costs in response to inflationary pressures resulting from elevated energy prices following Russia's incursion into Ukraine, as well as supply chain disruptions during the global economic recovery from the COVID-19 pandemic.

OTT India updates you with the latest news, Country’s no.1 digital news platform OTT India, Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.