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LONDON: Britain\u2019s economy unexpectedly grew in June as companies enjoyed a respite from the energy price surge caused \u200cby the Iran war, the start of the men\u2019s Football World Cup and hot weather, official data showed on Thursday.<\/strong><\/p>\n Gross domestic product rose by 0.3% during the month, putting Britain on course for the strongest growth among the Group of Seven rich economies in the first half of 2026, after being flat \u200bin May.<\/span><\/p>\n \u201cOverall, the economy seems to have weathered the Iran war extremely well, with little sign of consumers or businesses \u200bcurtailing activity in respo<\/span>nse to higher oil prices,\u201d Thomas Pugh, chief economist at accountancy firm RSM UK, \u2060said. \u201cLooking ahead, though, growth is likely to slow.\u201d<\/span><\/p>\n Economists polled by Reuters had forecast zero growth in month-on-month terms in June.<\/span><\/p>\n The Office for National Statistics said fewer firms mentioned the Iran war than in previous months, coinciding with a period of ceasefire which \u200bhas since lapsed.<\/span><\/p>\n It also said some alcoholic drinks producers, firms in the food sector, television production and advertising reported a boost from the World Cup, while retailers and some manufacturers mentioned the hot weather as a help.<\/span><\/p>\n The overall economic growth in June was driven by a 0.4% rise in services which was \u200bonly partially offset by falls of 0.2% in industrial production and 0.1% in construction.<\/span><\/p>\n For the second quarter \u2014 covering the three months to \u200bthe end of June \u2014 the economy grew by 0.4%, slowing from a rise of 0.6% in the first three months of the year, but \u200cstill a \u2060stronger than usual pace of growth and matching economist expectations.<\/span><\/p>\n Andrew Hunter, senior economist at Moody\u2019s Analytics, noted growth in household consumption and business investment.<\/span><\/p>\n \u201cThat said, it is worth remembering the repeated pattern in recent years of strong growth in the first half of the year being followed by a sharp slowdown in the second,\u201d he said.<\/span><\/p>\n Economists say the way the ONS measures the economy might be exaggerating \u200bgrowth in the first months \u200bof the calendar year.<\/span><\/p>\n The Bank \u2060of England, which has kept interest rates on hold despite the surge in energy prices, had forecast 0.3% economic growth in the second quarter but said underlying growth was running at about 0.1% \u200band would slow to zero in the July-to-September period.<\/span><\/p>\nIRAN WAR \u200bRESPITE<\/span><\/h2>\n