UK economy continues to perform poorly, although growth accelerated slightly in the second quarter to 0.3% quarter on quarter. In period January-March, the growth was 0.2%. In its statement, the National Statistics Office points out that the economy is experiencing a significant slowdown in the first half of the year.
The growth in the April-June period is supported mainly by services that rise by 0.5% and are the only contributing sector. The industry and manufacturing were on red, while the agriculture was zero.
Although there were improvements in retail sales in the second quarter, so the sector reported zero growth in the first half of the year. The consumers this year faced accelerated inflation as a result of currency devaluation and limited spending.
The data support the thesis that the strong performance of the British economy just after the Brexit referendum is not maintained in 2017. Following the sharp loss of momentum in the first quarter, the International Monetary Fund lowered its forecast for the British economy this year from 2.0% to 1.7%.
The economists expect UK GDP growth slowed down to 1.6% this year and to 1.3% in 2018.
On an annual basis in the second quarter, the UK economy grew by 1.2%.