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UK Growth Slows to 0.6%

UK Growth Slows to 0.6%UK Growth Slows to 0.6%

Weak construction and manufacturing output have slowed Britain’s economic recovery, according to official figures due to be published on Tuesday.

Gross domestic product is expected to have increased by 0.6% in the third quarter, falling back from strong 0.7% growth in the previous period, ITV website reported Sunday.

Growth in the second quarter bounced back from a rate of 0.4% at the start of the year, which was the weakest pace since the end of 2013.

GDP expectations for the year were recently marked down by the independent Office for Budget Responsibility from 2.5% to 2.4%–following growth of 3% in 2014–after the unexpectedly slow start to the year.

Britain’s construction sector shrank at its sharpest rate for almost three years in August in the third quarters, according to official data.

The Office for National Statistics added that although the country’s manufacturing output rose in August, it was down by 0.8% year-on-year.

Economists at Investec said: “Our baseline case is that the UK economy is passing through a slightly soft patch, thanks to the 10.5% rise in sterling–on a trade weighted basis–over the past two years.”

Earlier this month the International Monetary Fund warned that the risks of a global financial crash had increased as the slowdown in China and potential US rate rises threaten the stability of debt-laden emerging economies.

Financialtribune.com