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26 July 2017

UK economy grows 0.3 per cent in second quarter

The UK's economy grew by 0.3 per cent between April and June 2017, in line with forecasts.

James Andrews, Head of Investment Management, Redmayne-Bentley, said:

“UK second quarter GDP figures came in as expected, with the economy expanding by 0.3 per cent. This shows a slight improvement from 0.2 per cent expansion we saw in the first quarter but this is still well below the end of 2016’s 0.7 per cent growth rate. This means year-on-year growth has slowed from 2 per cent to 1.7 per cent as forecast by economists, as households start to feel the pain of real wages falling, given that inflation levels remain above wage growth levels.

“Inflation is unlikely to subside massively in the near term whilst wage growth still remains subdued given the uncertain economic conditions. This is likely to see the consumer squeeze continue through to Q3 and for this to continue to hold back the economy’s growth. Overall, it seems Brexit uncertainty and reduced household spending power will remain a drag on the UK economy for some time to come.”

UK economy grows 0.3 per cent in second quarter
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