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UK economy expands 0.6% in second quarter

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UK economy expands 0.6% in second quarter

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The UK economy grew 0.6 per cent in the second quarter, in only a marginal slowdown from the robust growth of the previous three months, providing some good news for the new Labour government.

The quarter-on-quarter change in the GDP figure from the Office for National Statistics on Thursday compared with 0.7 per cent growth in the first three months of the year and was in line with economists’ expectations.

Monthly GDP growth was zero in June following a 0.4 per cent expansion in May, the ONS said. The figure was in line with analysts’ expectations.

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Hailey Low, economist at the National Institute of Economic and Social Research, said the GDP figures “signal that growth remains on course, building on Q1’s strong performance”.

But she added: Persistent challenges such as low productivity growth, strained public finances and inadequate infrastructures have acted as barriers to achieving sustained growth.”

Prime Minister Sir Keir Starmer has placed growth at the centre of his economic agenda, promising to “take the brakes off Britain”.

Responding to the GDP data, chancellor Rachel Reeves said the government was “under no illusion as to the scale of the challenge we have inherited after more than a decade of low economic growth”.

Reeves argues that unless she can boost Britain’s long-term growth rate, the country will be trapped in a “doom loop” of high taxes and poor public services.

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But Jeremy Hunt, former Conservative chancellor, said: “Today’s figures are yet further proof that Labour have inherited a growing and resilient economy.”

“The chancellor’s attempt to blame her economic inheritance on her decision to raise taxes — something she had always planned — will not wash with the public.”

Sterling nudged higher following the ONS release. The pound climbed 0.2 per cent against the US dollar to $1.285. 

The yield on the interest rate-sensitive two-year gilt rose 0.03 percentage points to 3.58 per cent.

Ashley Webb, economist at consultancy Capital Economics, noted that the 0.6 per cent figure was marginally lower than the 0.7 per cent forecast by the Bank of England.

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“At the margin, this may give the bank a bit of reassurance that the recent strength of activity won’t prevent further falls in services inflation,” he added.

Separate ONS data published on Wednesday showed services inflation, a crucial gauge of domestic price pressures in the eyes of interest rate-setters, fell more than expected to 5.2 per cent in July from 5.7 per cent in June.

The UK economy entered a technical recession at the end of last year after being hit by high inflation and borrowing costs. However, it returned to growth this year, helped by stronger household spending as price pressures and mortgage rates declined.

In August, the BoE upgraded its GDP growth forecast for this year to 1.25 per cent from just 0.5 per cent owing to stronger-than-expected activity in the first half of the year.

It expects quarterly GDP growth to fall back to 0.4 per cent and 0.2 per cent in the third and fourth quarters, respectively.

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Suren Thiru, economics director at the ICAEW professional body, said: “This current pace of economic growth is unlikely to be maintained in the second half of the year as weaker wage growth, high interest rates and persistent supply constraints limits output.”

Services grew 0.8 per cent in the three months to June, with widespread offsetting falls of 0.1 per cent in the production and construction sectors.

GDP per head, which matters for living standards, posted the second consecutive quarterly expansion, but it remains below the level of the same quarter last year following seven quarters of contraction.

In the second quarter, there were increases in gross capital formation, government consumption and household spending, partially offset by falls in net trade.

Bar chart of Contribution to GDP growth, % points showing UK growth was helped by increases in gross capital formation, government consumption and household spending

In June growth was flat, driven by a fall in services owing to a weak month for health, retailing and wholesaling. The health sector was affected by the junior doctors’ strike, while wet weather hit sales.

The UK’s GDP quarter-on-quarter figure for the three months to June compares with a 0.3 per cent expansion in the Eurozone and 0.7 per cent growth in the US.

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Exploding pagers join long history of killer communications devices

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Exploding pagers join long history of killer communications devices

Israeli spies have a decades-long history of using telephones — and their technological successors — to track, surveil and even assassinate their enemies.

As far back as 1972, as part of their revenge on the Palestine Liberation Organization for the killing of 11 Israeli athletes at the Munich Olympics, Mossad operatives swapped out the marble base of the phone used by Mahmoud Hamshari, the PLO’s representative in Paris, in his French apartment.

On December 8, when he answered the phone, a nearby Israeli team remotely detonated the explosives packed inside the replica base. Hamshari lost a leg and later died.

In 1996, Israel’s internal security agency, Shin Bet, managed to trick Yahya Ayyash, a skilled Hamas bombmaker responsible for the killing of dozens of Israelis, into accepting a call from his father on a Motorola Alpha cell phone brought into Gaza by a Palestinian collaborator.

Hidden inside the phone was about 50g of explosives — enough to kill anybody holding the phone to their ear. Both instances are now part of Israeli spy legend.

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Among former intelligence officials, the cases are considered textbook successes, in which the phones served several crucial purposes: monitoring and surveilling the target ahead of the assassination; identifying and confirming the identity of the target during the assassination; and finally making it possible to use small explosive charges that killed only Ayyash and Hamshari in each case.

A memorial for Hamas bombmaker Yahya Ayyash who was killed in 1996 by Israel via explosives in a phone
A guerilla wearing a hooded face mask, stands on a balcony in the Olympic Village in Munich
On September 5 1972, Palestinian militants took 11 members of the Israeli Olympic team hostage in Munich © Popperfoto/Getty Images

As hundreds of pagers suddenly exploded across Lebanon on Tuesday afternoon, the suspicion has immediately turned to Israel, the only regional power with a spy network capable of carrying out such an audacious, sophisticated and co-ordinated attack.

Hizbollah, the militant group many of whose devices were blown up in the attack, said that “we hold the Israeli enemy fully responsible”.

Israel’s military declined to comment on the attack, though Prime Minister Benjamin Netanyahu was on Tuesday evening consulting with his top security chiefs after the blasts, which killed at least 12 people including a child, and injured thousands.

The Lebanese militant group had turned to the pagers to avoid Israeli surveillance after a public plea by Hizbollah’s leader, Hassan Nasrallah, for its operatives to ditch their smartphones as Israel stepped up attacks against its commanders during almost a year of intensifying clashes.

With no GPS capabilities, no microphones or cameras, and very limited text broadcasting, pagers — at least in theory — have smaller “attack surfaces” than smartphones, making them tougher to hack.

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Hizbollah appears to have preferred them for the same simplicity: they collect very little data to be siphoned off by Israel’s military intelligence.

But they seem not to have counted on the possibility that the tiny devices, usually powered by single AA or AAA batteries — and in the newest models, lithium — could be forced to explode.

Many of the explosions were captured on CCTV cameras as the targets went through the rhythms of daily life in supermarkets or strolling through southern Beirut.

They appear to have taken place within half an hour of each other, and were preceded either by a message or the beeping of an alert that prompted many to take the old-school communications devices out to look at their LCD screens, according to local media reports and videos posted on social media.

Two Israeli former officials, both with backgrounds in hacking the communications and other operations of the country’s enemies, told the FT that pagers do not usually have batteries large enough to be forced to explode with enough intensity to cause the injuries seen on the videos posted from Beirut hospitals.

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Many of the injured in the videos are missing fingers and have facial injuries, while others are bleeding profusely from their upper thighs — near where trouser pockets would normally be — and in some cases from their abdomens.

Both ex-officials said there was not enough publicly available evidence to confirm how exactly the detonations were executed and co-ordinated.

They said two obvious possibilities existed: a cyber attack in which a malware forced the pager’s lithium battery to overheat and then explode, or an intervention known as a “supply chain attack”, in which a shipment of pagers bound for Lebanon may have been intercepted and a tiny amount of explosive surreptitiously inserted.

Given the small size of the explosions, both ex-officials said the cyber attack was possible, if technically complex.

“It’s not easy, but you can do it to a single device remotely, and even then you can’t be sure if it will catch fire or actually explode,” said one of the ex-officials. “To do it to hundreds of devices at the same time? That would be incredible sophistication.”

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Police officers inspect a car inside of which a hand-held pager exploded, Beirut, Lebanon
Police officers in Lebanon inspect the inside of a car after a handheld pager exploded © Hussein Malla/AP

As Hizbollah made its switch away from smartphones, sourcing a technology that became largely obsolete in the early 2000s would have required the import of large batches of pagers into Lebanon.

But making them work effectively on existing mobile phone networks would be relatively easy, said one of the Israeli ex-officials.

Even today, a small market exists for pagers in industries where employees need to receive short text messages, from hospitals to restaurants and mail sorting warehouses.

While the text messages themselves could very easily be intercepted by Israeli intelligence, their true intent could be disguised by using codes or pre-arranged signals, making their appeal to Hizbollah obvious, said one of the ex-officials.

Since Hizbollah operatives were the most likely group to be using the pagers in Lebanon, an attacker could be relatively sure that they were mainly engaging with militant targets, the ex-official said.

“Even for Hizbollah, this should be a very easy investigation — were all the devices in question from the same manufacturer, maybe arriving in the same or similar shipments?” said one of the former officials.

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“Or were they all kinds of different devices, from all kinds of shipments and given to a varied group of [operatives] — junior, senior, political?”

If they were all from a single batch, or a single supplier, it raises the possibility that the shipments were intercepted and small amounts of modern explosives inserted.

One possibility, the second official said, is that the explosive was hidden within the batteries themselves, a trick that Israeli and western intelligence agencies have long worried that terrorists would try on a commercial airliner.

That is why many airport security checks ask passengers to turn on their laptops to show their functioning screens and batteries, and ensure that the battery compartment has not been swapped out for explosives.

The second ex-official, who has worked on previous Israeli cyber-sabotage operations, said it was relatively simple to create a functioning lithium battery that nestles a small explosive charge within it.

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But he said there were risks linked to doing this at scale: “The enemy is not simple, and of course they will carefully check any device before it is allowed anywhere near a senior member.”

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Lael Wilcox rode around the world and then went for another bike ride

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Lael Wilcox rode around the world and then went for another bike ride

Lael Wilcox arrived at the finish of her around-the-world bike ride in Chicago on Sept. 11. She rode more than 18,000 miles.

Rugile Kaladyte


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Rugile Kaladyte

American cyclist Lael Wilcox is claiming the record for the fastest woman to bike around the world.

The 38-year-old started her journey in Chicago on May 26 and ended it in Chicago on Sept. 11, riding 18,125 miles over the course of 108 days, 12 hours and 12 minutes.

“I’ve just been on a total high,” Wilcox told All Things Considered. “From three days out from the finish, I just got this feeling like, ‘I can do this,’ and I felt like I was flying. And I’m still kind of riding that wave. I just had so much fun out there, and it meant so much to me. And, you know, it also felt so good to be coming to the end of it.”

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Her record has yet to be certified by Guinness World Records, but it would beat by more than two weeks the previous record of 124 days and 11 hours set by Scottish cyclist Jenny Graham in 2018.

Wilcox’s first leg of the trip was a week riding from Chicago to New York City. Then she flew to Portugal, spending a month riding east through Spain, France, Belgium, the Netherlands, Germany, Switzerland, Italy, Austria, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Bulgaria, Turkey and Georgia.

Next it was a flight to Australia, where she spent about another month traveling from Perth to Brisbane. Then she spent a week biking through New Zealand, and afterward it was back to North America. She landed in Alaska and rode from Anchorage through western Canada and down the U.S. West Coast, before heading east through the Southwest and back to Chicago.

Riding 18,125 miles over nearly 109 days means averaging over 166 miles a day. Sometimes she rode more than 200.

And the world is not flat. Wilcox climbed a total of 629,880 vertical feet on her bike — equivalent to scaling the height of Mount Everest more than 21 times.

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Guinness World Records does not require cyclists to literally ride the complete globe, as oceans would make that difficult (though perhaps not impossible). The requirements call for at least 18,000 miles of bicycling and for riders to cross two antipodal points — in Wilcox’s case, Madrid, Spain, and Wellington, New Zealand. Riders also have to take commercial transportation when they cross oceans — no private jets.

Wilcox is used to grueling ultradistance cycling

In this photo, Lael Wilcox is greeted by fans and friends in Chicago at the finish of her bike ride around the world on Sept. 11. Wearing a bicycling helmet, she stands in the foreground with her bicycle. Fans and friends, many with bicycles, stand behind her. Tall buildings rise in the background.

Lael Wilcox is greeted by fans and friends in Chicago at the finish of her bike ride around the world on Sept. 11.

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Rugile Kaladyte

Wilcox is no stranger to long bike rides. She has been doing ultradistance racing since 2015, when she set the women’s record (15 days, 10 hours and 59 minutes) in the Tour Divide race, which runs from Banff, in the Canadian province of Alberta, all the way to the U.S.-Mexico border in Antelope Wells, New Mexico. She holds the women’s record in the Trans Am Bike Race across the U.S., and in 2016 she became the first woman and first American to win that grueling race from Oregon to Virginia, finishing in just over 18 days.

This time, she knew it was going to be a “pretty exhausting endeavor,” she told NPR. That’s why she invited fellow cyclists to ride along with her each day. Well-wishers also camped out along her route, offering drinks and treats.

Thousands of people came out along the way, she said.

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“I’d be through a super-remote stretch like British Columbia where, you know, there’s maybe a gas station every 150 miles and there’s nobody out there. I saw, like, eight bears. And then I get closer to a town, and all of a sudden people start showing up, you know — a family with two kids and another guy that brought me a pastry and a nurse coming out in her full scrubs with the stethoscope just to say hello, or a construction guy that knew I was riding.”

Wilcox’s wife, photojournalist Rugile Kaladyte, documented the journey with extensive photos and videos and was part of a podcast of nightly updates. Wilcox adds that she’s grateful they “got to have this life experience together.”

Guinness World Records told NPR that it has received an application for Wilcox’s record attempt and that its certification process can take 12 to 15 weeks.

When NPR talked with her shortly after she made it to Chicago, Wilcox was busy — on a bike ride with her family. “There’s nothing else I’d rather do,” she said.

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Live news: Donald Trump says he will meet India’s Narendra Modi next week

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Live news: Donald Trump says he will meet India’s Narendra Modi next week

Ireland needs to build 20,000 more homes a year than planned to keep up with a growing population and pent-up demand, the central bank has warned, saying that will require €6.5bn-€7bn in development finance.

Failing to fix Ireland’s housing crunch will drag on the nation’s competitiveness, the bank said.

Ireland, which is grappling with a chronic housing supply and affordability crisis, has boosted homebuilding: According to official data, 32,695 dwellings were completed last year, up 10 per cent on 2022, and the government is targeting 33,450 this year.

But the central bank says 52,000 a year are needed. Planning bottlenecks and a lack of skilled construction workers were compounding the problem.

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