United Kingdom: Economic growth slows in Q2
July 26, 2011
In the second quarter, according to preliminary data released by the Office for National Statistics (ONS) on 26 July, GDP expanded 0.2% over the previous quarter in seasonally adjusted terms, affirming the fragile recovery of the British economy. The figure came in below the first quarter's 0.5% increase but matched market analysts' expectations. ONS listed several exogenous factors that might have weighed on the subdued growth in the second quarter, namely: April's royal wedding, an additional bank holiday and the after-effects of the Japanese tsunami. The lower GDP print mainly reflected a negative contribution to growth stemming from the industrial sector, which contracted 1.4% quarter-on-quarter, followed by the primary sector, which declined 1.3%. Meanwhile, both the services and construction sectors grew at the same pace of 0.5%.