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ONS confirms weak UK growth of 0.2% in Q2
The UK economy grew by just 0.2% in the second quarter of the year, the Office for National Statistics (ONS) said today.
This was in line with economists’ expectations, but still down on the 0.5% recorded for the first three months of the year.
Weaker private consumption dragged on growth, with total services output declining 0.4%.
The manufacturing sector also dragged on growth, with production decreasing by 0.3%, compared to an increase of 0.7% in the Q1.
Business services and finance were the largest contributors to growth, increasing 0.7%, up on the 0.4% increase the previous quarter.
The ONS said it is difficult to pinpoint an exact cause for the low growth figure but stated “special events” such as the Royal wedding may have been a factor.
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It said: “It is not possible to state precisely what the net overall impact of these special events, such as the Royal wedding might have been.
“Analysis we have carried out indicates Q2’s special events may have had a net downward impact on Q2 2011 GDP of 0.4% in the services sector and 0.1% in the production sector.”
Today’s figures will heighten fears of the UK slipping back into recession. Concerns over slow economic growth have stoked tensions in the coalition government, with business secretary Vince Cable calling for the Bank of England to initiate a fresh round of quantitative easing to kick-start growth.