Economy picks up pace after slow start

BRITAIN’S economy has picked up pace after a slow start to the year despite worries about the general election, the latest figures show.

The economy is on course to expand by 0.5pc in the second quarter of the year, up from growth of 0.2pc in the first quarter, according to a report by IHS Markit. Businesses are also hiring with around 30,000 private sector jobs being created every month.

‘The economy is likely to regain some momentum in the second quarter,’ said Chris Williamson, chief business economist at IHS Markit.

However, he said the economy was ‘only eking out modest growth’.

The group’s index of activity in the services sector, where scores above 50 show growth, slipped from 55.8 in April to 53.8 in May. Hotels and restaurants struggled due to ‘squeezed household budgets and in some cases delayed decision making ahead of the general election’.