The UK economy expanded by 0.4% between April and June, slowing from 0.6% growth in the previous quarter amid the economic effects of the Iran war. Higher energy prices and weaker consumer confidence were cited as pressures, although the result was stronger than some expectations and suggested continued resilience.

Services drove growth, with firms reporting that unusually hot weather and the start of the World Cup supported trade; GDP rose by 0.3% in June alone. The government said it would address cost-of-living pressures, while opposition politicians blamed Labour’s economic policies and business groups warned that rising employment and other domestic costs were limiting longer-term growth.