UK growth rebound could be short-lived
UK economic growth strengthened in the second quarter following a lacklustre start to the year but economists warned that the rebound may be short-lived.
Official figures yesterday showed that gross domestic product (GDP) expanded by 0.4 per cent between April and June, compared to the first three months of the year – in line with expectations.
It comes after quarter-onquarter growth slumped to just 0.2 per cent in the opening quarter of the year amid frosty weather brought in by the Beast from the East .
Rob Kent-smith, head of national accounts at the Office for National Statistics, said: “The economy picked up a little in the second quarter with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year.
“However, manufacturing continued to fall back from its high point at the end of last year and underlying growth remained modest by historical standards.”
Christian Jaccarini, senior economist at the Centre for Economics and Business Research, said: “The UK’S economic outlook remains mixed at best. Brexit-related uncertainty is set to continue to weigh on investment growth, whilst renewed pound weakness supports inflation.”
Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “This data has illustrated some of the current challenges in the manufacturing industry. It’s disappointing and should act as a red alert to see declines alongside a widening trade deficit.”