LONDON (MNI) – UK output rose 0.7% in the second quarter, a marked
accleration from the first quarter, although a slower pace of
growth than in the three months through May, according to the National
Institute of Economic and Social Research.
NIESR said the 0.7% growth was down from the 0.9% estimated for the
three months through May. The most recent official data showed Q1 UK GDP
rose 0.3% on the quarter.
NIESR warned that the current rate of growth may not be maintained
through the rest of this year due to headwinds from the fiscal
tightening underway in the euro zone and the UK:
“Unfortunately, the UK economy does face headwinds. Fiscal
consolidation both in the UK and the euro area will restrict growth in
the short-term and there is clearly a risk that this rate of growth will
not be maintained through the rest of this year”.
–London bureau: +4420 7862 7492; email: dthomas@marketnews.com
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