UK economy grows 0.4% as oil prices and World Cup spending shape outlook
UK GDP grew 0.4 per cent between April and June, down on the previous quarter, with oil and gas prices, World Cup spending and a June ceasefire shaping the outlook.
The Full Story
A plain summary built from the channels that reported this story.
The UK economy grew by 0.4 per cent between April and June, slower than the previous three months but stronger than many experts had feared after higher oil and gas prices caused by America's war in Iran.
June brought a ceasefire in the Gulf, another heatwave in Britain and World Cup fever. Households increased their spending, and business investment surged. The economy had started the year strongly. The second quarter figure still left the UK near the top of the G7 table, ahead of France, Italy and Germany.
Ministers say there is hope for the future and more help is coming for people struggling with the cost of living. "There's a whole range of things we can do to support people," a government voice said, adding that the focus would be on British interests, growth benefiting British people and job creation.
But risks remain. Much depends on President Trump, and there is a lot that could go wrong. If the Strait of Hormuz remains closed, energy prices could rise again, pushing inflation higher and potentially forcing the Bank of England to keep interest rates elevated or even raise them. Oil prices have already risen in the past month as conflict with Iran has continued, lifting petrol and other prices.
An October Budget is coming. The new chancellor, John Healey, has promised more cost of living support, but there is also speculation about tax rises. The coverage noted the difficulty of matching Andy Burnham's ambitions with the state of government finances, and suggested the new prime minister could be constrained by Labour's manifesto pledges, as his predecessor was.
Labour came to power two years ago promising to revive economic growth and improve living standards. It pledged the highest sustained economic growth in the G7. So far, the UK has been in the middle of the pack. GDP per person has grown by 2 per cent over two years, which is not bad in the circumstances but not enough to make the average household feel richer.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| A closure of the Strait of Hormuz could push energy prices and inflation higher, potentially leading the Bank of England to keep rates elevated or raise them. | |
| Household spending and business investment rose in June, supported by a Gulf ceasefire, a heatwave and World Cup interest. | Reported by ITV |
| UK economic growth was 0.4 per cent between April and June, a slowdown from the previous three months but near the top of the G7. | |
Channel Perspectives
What each channel focused on, with key quotes.
ITV1 led on the UK's 0.4 per cent growth as a sign of resilience despite higher oil and gas prices, framing it as a slowdown from a strong start but still enough to beat France, Italy and Germany. It balanced the positive data with risks from President Trump, the Strait of Hormuz, oil-led inflation, interest rates and the October Budget. It also tied the figures to cost of living politics and Labour's growth pledges, before turning later to separate NHS pressure from the heat.
- “Higher oil and gas prices caused by America's war in Iran didn't stifle our economy as much as some experts had worried about between April and June.”
- “Households responded by ramping up their spending. Business investment surged too.”
- “If the Strait of Hormuz remains closed, energy prices could rise again, pushing inflation higher and potentially forcing the Bank of England to keep interest rates elevated or even raise them.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.