UK Growth Tops G-7 as Government Spending Helps Fuel Economy

The UK economy fared better than expected in the second quarter, bringing some relief for Chancellor of the Exchequer Rachel Reeves but raising the bar to further interest-rate cuts from the Bank of England.

Gross domestic product rose 0.3%, the Office for National Statistics said Thursday, beating the 0.1% forecast by both private-sector economists and the UK central bank. Output in June alone gained 0.4% — double expectations — following modest declines in the previous two months.

It means Britain recorded the fastest growth of the Group-of-Seven nations during the first half of the year, a repeated pledge of Keir ...