There’s sport on – grab the booze.

The UK's economy grew by 0.6% between April and June as it continued its recovery from the recession at the end of last year.  The latest figure was in line with forecasts (for a change) and follows a 0.7% increase in the first three months of this year.

The driver behind the growth was led by the services sector, in particular the IT industry, legal services and scientific research.  And of course, us wonderful insolvency practitioners.  By contrast, manufacturing and construction both saw output fall between April and June.

"The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year,” said Liz McKeown, director of economic statistics at the Office for National Statistics, which released the figures today (Thursday 15 August).

As you will recall last year, the UK economy fell into a shallow and short-lived recession.  A recession is defined as economic activity shrinking for two three-month periods – or quarters – in a row.

Growth was however flat in June, partly as a result of the knock-on impact of strike action by junior doctors. NHS England reported that 61,989 appointments alone were cancelled because of industrial action by junior doctors between 27 June and 2 July.

Anna Leach, chief economist at the Institute of Directors, said businesses were reporting modest activity for the summer months "no doubt affected by still high interest rates. The challenge for government is to firmly lift the UK’s growth performance out of the doldrums," she continued.

Slightly earlier this week, the latest inflation figures showed overall prices rose by 2.2% in the year to July, slightly above the Bank of England’s target of 2% where the rate had been since May.  This rise was also widely predicted (time for a bonus for the economists) and is down to gas and electricity prices falling by less than they did a year before.

With a predicted rise in Ofgem’s Price Cap due from October (it is due to be announced on 27 August), you can see why The Bank of England expects inflation to go up to 2.75% in the coming months before falling below 2% next year.

The next batch of figures on inflation, employment and wages data will be released before the next rate-setting meeting on 19 September.  Sanjay Raja, chief UK economist at Deutsche Bank Research, said: "A September rate cut should no longer be off the table. And it’s entirely conceivable to think that we could get multiple more rate cuts this year."

Figures from market research firm Kantar show that grocery price inflation has risen for the first time in more than a year, with a rise of 1.8%.  In spite of this, sales of wine rose 35% on the day of the Olympic opening ceremony - with 4.6 million bottles sold - alongside £10m worth of beer bought on the day of the Euro football final. 

Before the 1.8% increases, prices in the supermarkets had fallen for the last 17 months.

Kantar’s data suggested products which saw the fastest price rises included vitamin and mineral supplements, fruit juices and chocolate.  Meanwhile (the otherwise unrelated trio) of toilet tissues, bottled cola and dog food saw the slowest price rises.

It added that the return to better weather meant barbecue food sales were boosted in the weeks to August.  Sales of cough lozenges rose by 28% as people battled Covid-19 and summer colds too, Kantar said.