ONS to publish UK Q2 economic growth figures today

| July 23, 2010 | 0 Comments
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The Office for National Statistics (ONS) is scheduled to publish GDP figures for the second quarter today - the first G7 country to do so.

Analysts expect growth of 0.6% for the April to June quarter - which would represent the strongest performance since before the credit crunch.

Strong growth is expected to come from a recovery in industrial output, which makes up for approximately 17% of economic output.

Furthermore, the UK’s closely-watched services sector, which accounts for three-quarters of economic output, also put in a strong performance. However, the sector suffered a setback in April due to the disruption of the volcanic ash cloud.

According to Philip Shaw, economist at Investec: “The economy is currently benefiting from a turn in the inventory cycle, which while typical of this stage of the recovery, should be temporary.”

However, despite the positive news, there are fears for future economic growth. Howard Archer, economist at IHS Global Insight, believes: “There is a very real risk that the second quarter will be as good as it gets for the economy for the time being.”

Many leading business groups have warned that the coalition Government’s tough measures to cut the budget deficit could risk pushing the UK back into recession.

The ONS will publish its figures at 09:30 today.

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