UK economic growth slows to 0.2%

| July 26, 2011 | 0 Comments
UK economic growth slows to 0.2%

The UK’s Gross Domestic Product (GDP) increased by only 0.2% in the second quarter of 2011, following an increase of 0.5% in the preceding three months.

However, the Office for National Statistics (ONS) highlights special events that could have curbed growth, including the additional April bank holiday, the royal wedding and the after effects of the Japanese tsunami.

On a sector basis, total services output increased by 0.5% during the three months to the end of June, compared with an increase of 0.9% in the previous quarter.

Transport, storage and communication saw growth of 1.1% (Q1 2011: +2.5%) and Government and other services showed zero growth during the second quarter (Q1 2011: +1.1%).

Distribution, hotels and restaurants increased by 0.3% (Q1 2011:+0.9%) and construction output increased by 0.5% (Q1 2011: -3.4%).

Total production output decreased by 1.4% in the second quarter (Q1 2011: -0.1%) and manufacturing fell by 0.3% (Q1 2011: +0.7%).

The official figures follow a call from Business Secretary, Vince Cable, for the Bank of England to reinstate its Quantitative Easing programme, which was used to inject £200 billion into the economy in 2009/10.

They also come alongside a recent summary of forecasts for the UK economy by HM Treasury which puts average predicted UK economic growth at 1.8% in 2011, with Retail Price Index inflation running at 5.2%.

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