UK Q2 economic growth figures unchanged, US revised down

| August 30, 2011 | 0 Comments

The Office for National Statistics (ONS) has revealed the UK economy grew by 0.2% in the April to June period – unchanged from a previous estimate published last month.

A third and final estimate will be available next month.

However, growth for the second quarter slowed from the 0.5% growth posted in the first quarter.

On an annual basis, meanwhile, there was a 0.7% gain when compared to the second quarter in 2010 – again unchanged from the initial estimate.

The slowdown in growth for the second quarter was attributed to one-off factors such as the public holiday for the royal wedding at the end of April, while manufacturing was hit by supply shortages due to the Japanese earthquake.

The latest figures will undoubtedly put pressure on the coalition government to boost the economy.

The government has been criticised by many for the harsh spending cuts - introduced to reduce the budget deficit. Some have suggested they could even push the economy back into recession.

However, the government continues to defend the cuts and have deemed them necessary and fair in order to bring the budget deficit down.

Meanwhile, across the Atlantic, the US economy grew at an annual rate of 1% in the April to June period.

This was much less than the initial estimate of 1.3%, said the Commerce Department. As with the UK GDP figures, a third and final estimate will be available next month.

The figures will put pressure on the Government and the central bank, the Federal Reserve, to take action to stimulate the world’s largest economy.

Recent figures showed US consumer spending grew in July – boosted by an increase in car sales.

According to the Commerce Department, sales rose by 0.8% in July compared with the previous month – the largest rise in five months.

US consumer spending figures are closely monitored as they account for more than two thirds of economic output.

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