The bounceback may be under way, but Reeves still has major difficulties to confront

The chancellor may need to be more explicit about who will pay the taxes needed to make the budget numbers add up

- Phillip Inman

Britain's economy has defied the doomsayers. After growing strongly in the first quarter this year, it expanded again in the three months to June - and not by the measly 0.1% forecast by City economists but a respectable 0.3%.

The latest data shows a 0.4% expansion in June alone as manufacturing recovered its mojo. Meanwhile, the construction sector, hit by a slowdown in new projects, turned its hand to repairs and maintenance, reversing a fall in May to post a solid 1.2% growth rate over the second quarter.

Probably the most cheering aspect for Rachel Reeves from the latest Office for National Statistics data was the feedback from businesses involved in scientific research and development. This sector posted an 8.3% rise in activity in June, closely followed by the architectural and engineering sectors, which collectively expanded by 6.7% on the previous month.