LONDON: Growth in the UK economy edged up in line with forecasts in the second quarter, in figures that will underscore Britain’s loss of economic momentum after a sharp growth slump at the start of the year. Official figures from the Office for National Statistics estimate the economy expanded 0.3 per cent in the three months to June, up from 0.2 per cent in the first quarter. Year on year growth slowed to 1.7 per cent from 2 per cent. The British economy has been in the grip of a slowdown this year as inflation has climbed to a four-year high, pinching consumer spending and raising import prices.
Responding to the figures, Philip Hammond, UK chancellor, said the government was “not complacent” about the economy as the country begins its EU exit talks. “We need to focus on restoring productivity growth to deliver higher wages and living standards for people across the country. That is why we are committed to investing in infrastructure, technology and skills to deliver the best possible base for strong future growth”, said Mr Hammond.
The bulk of the second quarter growth came from Britain’s dominant service sector, which rebounded to grow 0.5 per cent, following a 0.1 per cent expansion at the start of the year. Services makes up just under four fifths of the economy. Construction and manufacturing were the biggest drags on the economy however, contracting 0.9 per cent and 0.5 per cent respectively. After the service sector, film-making was the best performing industry, with motion pictures output up 8.2 per cent in the three months to June, adding 0.07 percentage points to GDP growth.
