UK gross domestic product (GDP) increased by 0.4% in the three months to June, down from 0.6% in the three months to May, the Office for National Statistics (ONS) has revealed.

The latest data also follows growth of 0.8% in April, demonstrating a slowdown in the UK economy following a positive start to the year.

The ONS stated that services output was the largest contributor to this GDP growth, increasing by 0.5% in June. Construction output grew by 0.3%, while production output showed no growth.

Month-on-month, GDP grew by 0.3%, after showing no growth in May, having been revised down from 0.1% growth.

The monthly growth was driven by 0.4% in services and was partially offset by falls of 0.2% in production and 0.1% in construction.

Danni Hewson, head of financial analysis, said June may well be "the last real sweet spot for the UK this year".

She concluded: “Whilst growth over the second quarter of the year didn’t quite live up to that enjoyed in the first three months, it is still notable as it covers a period when tension was waxing and waning in the Middle East and the oil price was volatile. Businesses have become acutely sensitive to the fluctuations of the Iran war, watching every ebb and flow in the price of oil and every tanker moving through the Strait of Hormuz, and June delivered a small respite as hopes of a lasting ceasefire mounted.

“The UK economy has fallen into a pattern over recent years, with growth front loaded to the start of the year but petering out in later months despite the historically significant ‘golden quarter’ for retailers and hospitality businesses in the lead up to Christmas. Speculation about the potential impacts of Budget measures has undoubtedly impacted the decision making of many firms choosing to press pause on activity until they have more certainty.

“That will be at the forefront of the minds of many in the Treasury. Any additional nerves will only add to the uncertainty being created by the situation in the Middle East, which could seriously curtail growth into next year."

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