Economic growth comes in at 0.3% for Q2

26 Jul 17

The UK economy grew by 0.3% between April and June this year, according to latest Office for National Statistics figures.

GDP growth was driven by services, which grew 0.5% compared with 0.1% in three months from January to March.

Other contributors included retail trade, which improved after a dip in the first quarter as well as growth in film production and distribution.

However, manufacturing and construction fell by 0.4% and 0.9% respectively, each contributing negative 0.06 percentage points to GDP.

Commenting on today’s figures, Stephen Clarke, policy analyst at the Resolution Foundation, said: “Today’s GDP data confirms that growth slowed across the first half of 2017, despite inching up to 0.3% in the second quarter.

“Most concerning for living standards is the fact that GDP per capita has shown almost no growth since the turn of the year, growing by a mere 0.15%, down from 0.8% in the second half of 2016.

“This weak performance underpins the fact that British living standards are withstanding yet another squeeze, with real disposable household incomes falling for the last three quarters.”

Both Labour and the Liberal Democrats called the figures as “weak”.

Shadow chancellor John McDonnell said: “Growth for the first half of 2017 is below expectations, and it follows continued data showing working families are being squeezed with wages not keeping up with prices.”

Chancellor Philip Hammond said: “Our economy has grown continuously for four and a half years, delivering record levels of employment. We can be proud of that; but we are not complacent.”

He reaffirmed the government’s commitment to tackling the productivity issue through investment in infrastructure, technology and skills.

Did you enjoy this article?