World Economy

UK Growth Rate Unchanged

UK Growth Rate UnchangedUK Growth Rate Unchanged

UK economic growth during the second quarter of the year was unchanged at 0.7%, official figures have confirmed.

That figure was up from 0.4% in the first quarter and means GDP increased by 2.6% over the last year as expected, NewsNow reported.

Looking more closely, household spending was up by 0.7%. That is down on the 0.9% seen in the first quarter, but still represents 16 consecutive quarters of growth as consumers continue to ring the tills.

Exports provided a welcome boost, rising 3.9% between April and June, up notably from 0.4% in the previous quarter.

Similarly, business investment jumped 2.9% in the second quarter to reach its highest point in a year, beating the 2% gain seen in the previous quarter.

Commenting on the figures, British Chambers of Commerce chief economist David Kern said: “Although the headline figure of quarterly growth of 0.7% is unrevised from the old estimate, the new details published today are positive and very welcome. We saw strong growth in business investment and a large reduction in our trade deficit.

“While the figures point to some rebalancing in the economy towards investment and exports, it is much too early to be satisfied with where we are, particularly on the trade figures.

“Our current account deficit, which as well as trade includes items such as investment income, remains unacceptably large–at about 6% of GDP. In spite of today’s figures, longer term trends suggest that we are still not making sufficient progress towards rebalancing our economy.

“Further measures are needed to sustain growth and boost exports, and the volatile international situation supports our view that it will be too risky to contemplate early interest rate increases.”