The U.K. economy is showing further signs of a long-awaited rebound, but the picture is complicated by the fallout from the Iran war and high energy prices.
Brits have spent more than expected in recent months amid hot weather, a strong performance in the FIFA World Cup and an uptick in business confidence.
Official data published Thursday showed the U.K. economy grew by 0.4% in the second quarter, following 0.6% expansion in the first quarter. Business investment increased by 1.7% in the same period, defying the forecast in a Reuters poll of economists for a 0.5% decline.
The figures keep the country on track to record the strongest growth of any G7 nation for a second straight quarter, Sanjay Raja, Deutsche Bank's chief U.K. economist, said Thursday. Raja said the latest figures brought the annualized growth rate across the first half of the year to a "scorching" 2%.
