“June's stronger-than-expected growth is encouraging, with the warm weather and start of the World Cup supporting consumer spending. Together with a solid performance across the second quarter, today's figures suggest the UK economy has so far proved more resilient to the economic fallout from the Iran war than was widely expected a few months ago.
“The challenge now is maintaining that momentum. Businesses have become somewhat less pessimistic recently, but uncertainty around the new government and the Autumn Budget could encourage firms to keep plans on ice. Continued instability in the Middle East also leaves the economy exposed to renewed volatility in energy markets and financial conditions.
“As the Prime Minister focuses on the cost of living this week, the priority must be to build on the economy’s recent resilience and deliver sustainable growth. Tackling the cost of doing business – from high industrial electricity and employment costs to business rates reform – will be critical to achieving this goal. This would help put the economy on a stronger footing to deliver rising real wages and higher living standards across the country.”