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Britain’s economy grew at a slower pace in the second quarter than initially estimated, despite signs of improvement in household finances ahead of the country’s annual budget announcement next month..
Office for National Statistics data showed the economy grew by 0.5 percent in the period from April to June.
Preliminary estimates by the Office of National Statistics for the second quarter showed GDP growth at 0.6 percent, the same rate expected by economists..
Gaura Suri, economist at PricewaterhouseCoopers, said: “Britain’s gross domestic product grew in the second quarter of this year at a pace slightly lower than initial estimates, but Britain’s economic outlook has improved significantly since the beginning of the year.”».
“This is largely due to the return of inflation to the target level, the start of interest rate cuts, and political stability after the elections,” he added».
The savings rate for British families rose to 10 percent in the second quarter of the year, up from 8.9 percent in the first three months, and the per capita GDP rose for the second quarter in a row, albeit at a slower pace than the first quarter..
The Bank of England (the central bank) expected growth to slow to 0.3 percent in the third quarter of this year, but indicated that there are indications that the first cut in interest rates in August and expectations of further cuts, in addition to a decline in inflation, may boost growth later in the year..
The statistics office stated that the economy grew by 0.7 percent compared to the second quarter of last year, which is a slower rate than economists’ expectations of a rise of 0.9 percent..
