UK poised to record its fastest growth rate in three years
BRITAIN is expected to have recorded its fastest economic growth in three years between April and June when second-quarter GDP figures are released this morning.
Much of the acceleration is likely to come from a rebound in industrial output – economists estimate that it expanded by around 1.2 per cent in the three months to June.
The services sector, which makes up around three-quarters of economic output, is also likely to have performed strongly, despite a setback in April due to disruption caused by Iceland’s volcanic ash cloud.
Analysts say that recent purchasing managers’ surveys point to a modest improvement in the second quarter.
The London economy saw continued but slow growth in the second quarter, the London Chamber of Commerce and Industry said yesterday in its quarterly economic survey.
The survey shows only slow growth in the three months to June with a small margin of improvement in the key business indicators. Businesses expecting to see an increase in turnover rose from 57 per cent to 64 per cent. Just over half of firms expected to see their profits increase.
But the outlook for the next 12 months is less positive. Bank of England MPC member Spencer Dale said in an interview published yesterday that the near-term outlook for growth and inflation had deteriorated over the past couple of months.
He expected inflation to remain above target until the end of 2011 and said there were signs of softer growth.