UK economic growth slowed to 0.3% between April and June although the figure was higher than the 0.1% expected.

GDP rose 0.4% month-on-month in June, following a 0.1% fall in May, according to official figures released by the Office for National Statistics today.

The 0.4% quarterly growth in June was driven by increases of 0.4% in the services sector and 1.2% in the construction sector. The production sector saw a decline of 0.3%.

Reception to the figures was mixed, with commentators questioning whether the growth could be sustained.

Lindsay James, investment strategist at Quilter, expects any growth for the UK economy in the second half of this year to be muted.

She said: “With global growth set to slow at the same time as this slowdown in the UK, the picture is only becoming more challenging. Investors too continue to be fairly pessimistic on UK growth despite that stellar first quarter. In our own survey of global fund managers, expectations for real GDP growth in the UK for 2025 sit at 0.9 %, suggesting that very little growth will be eked out in the second half of this year.”

Danni Hewson, head of financial analysis at AJ Bell, said: “Despite shaky consumer confidence, the service sector delivered the biggest boost to June’s figures. This was helped along by balmy temperatures which tempted people to visit beer gardens and ice cream parlours.

“The question now is whether growth can be sustained in the face of speculation about tax rises in the autumn, which could further undermine flagging business sentiment.”

Scott Gardner, investment strategist at JP Morgan-owned platform Nutmeg, said consumers and businesses wanted to feel improvements if they are to increase spending and investment.

He said: “Uncertainty both at home and abroad can put the brakes on UK consumption and business investment.

"Worryingly, speculation about potential Autumn Budget measures that could tackle the nation’s strained finances have started to gather pace. And while history rarely repeats itself exactly, we saw last year just how much speculation can feed uncertainty across the economy, in turn, dampening business and consumer confidence.

"The economy may be growing but consumers and businesses need to feel improvements to increase spending and investment. Until then, the path to consistent UK economic growth is proving to be a long, winding slog.”