–UK Jun-Aug GDP 0.7% Vs 1.3% In May-Jul
LONDON (MNI) – UK output rose 0.7% in the three months through
August, the National Institute of Economic and Social Research said
today.
NIESR said that the estimates for August showed growth has slowed
and will decelerate further still over the coming months. The institute
left intact its view that the Bank of England would leave Bank Rate
unchanged until the summer of 2011.
“The pace of economic growth may have softened in the three months
to August, but it is still a robust rate for the UK. Unfortunately, the
rate of growth will continue to decelerate over the coming months. These
recent numbers do not alter our view that the MPC will hold off from
raising interest rates until the summer of next year”.
The NIESR estimate follows the release of official production data
for July by the NS this morning.
Manufacturing output rose by 0.3% month-on-month in July, in line
with forecasts. Output was 4.9% up on the year – the best performance
since December 1994. Overall industrial production rose by 0.3%
month-on-month in July after falling 0.5% in June.
Despite these reassuring numbers, recent weak business surveys have
increased concerns that the UK economy will find it difficult to repeat
in Q3 the strong performance it saw in Q2.
–London bureau: +4420 7634 1624; email: dthomas@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MT$$$$,M$$BE$,MFBBU$]
