The º£½ÇÊÓƵ economy expanded by 0.4 per cent in June, according to official figures, marking an unforeseen recovery after months of tariff and tax uncertainty.
During the second quarter, GDP climbed by 0.3 per cent following declines in both April and May, as reported by .
The Office for National Statistics (ONS) revealed that the º£½ÇÊÓƵ services sector, accounting for more than 80 per cent of the nation's output, grew by 0.4 per cent in the second quarter, whilst a drop in production dampened overall growth.
Construction witnessed 1.2 per cent expansion in the second quarter.
A Bloomberg survey of economists had forecast GDP to increase by 0.1 per cent before Thursday morning's official announcement.
"Growth slowed in the second quarter after a strong start to the year," said Liz McKeown, director of economic statistics at the ONS.
"The economy was weak across April and May, with some activity having been brought forward to February and March ahead of stamp duty and tariff changes, but then recovered strongly in June."
Chancellor Rachel Reeves described the economic data as "positive" as the º£½ÇÊÓƵ demonstrated "continued growth" following an initial 0.7 per cent leap in the first quarter.
"I know that the British economy has the key ingredients for success but has felt stuck for too long," Reeves said. "We're investing to rebuild our national infrastructure, cutting back on red tape to get Britain building again and boosting the national minimum wage to make work pay. There's more to do and today's figures only fuel my ambition to deliver on our plan for change."
Shadow chancellor Mel Stride said: "Any economic growth is welcome, but growth is slowing with business leaders saying that all indicators are flashing red.
"The Chancellor's economic vandalism is clear."
º£½ÇÊÓƵ economy on shaky ground
The most recent figures will hardly please Treasury officials and City experts, who are eager to witness increased spending levels nationwide.
The Bank of England will also examine the fresh GDP data with considerable caution, hoping that five interest rate reductions over the past year might stimulate investment and productivity.
The central bank's most recent monetary policy assessment attributed sluggish growth to fiscal measures.
Most experts predict the º£½ÇÊÓƵ will expand by approximately one per cent this year, though there remains uncertainty about next year's performance.
The Office for Budget Responsibility (OBR) is broadly anticipated to warn that elevated tariffs on the º£½ÇÊÓƵ following President Trump's election victory will derail stronger growth projections.
However, focus is rapidly shifting towards potential tax increases in the autumn, with certain experts suggesting Reeves confronts a deficit exceeding £20bn. The National Institute of Economic and Social Research (NIESR) has suggested that Reeves may be compelled to increase taxes by as much as £50bn in the autumn.
Speculation indicates that the Chancellor might focus on dividends, pension pots and inheritance, given the government's commitment not to raise income tax, VAT or national insurance.
The proposal of a wealth tax, supported by several Labour backbenchers, was dismissed as "daft" by Business Secretary Jonathan Reynolds.
Industry associations are appealing to the Chancellor to refrain from imposing additional costs on businesses nationwide.
"Policy uncertainty in the run-up to the Autumn Budget risks tipping the balance," stated Ben Jones, chief economist at the Confederation of British Industry (CBI).
"With the business tax burden already at a 25-year high, the government must chart a steadier course by ruling out further tax rises and prioritising policies that can quickly lift investment and productivity."
Reeves' alternative could be to reduce spending, but this would signify another about-face for the government following its promise to boost expenditure by £190bn over the forthcoming five years.
