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Q2 GDP growth hits 0.6%; analysts disappointed

  • 25/07/2013
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Q2 GDP growth hits 0.6%; analysts disappointed
The UK economy grew by 0.6% in the second quarter, in line with analysts’ expectations and up from the modest 0.3% growth recorded in Q1.

The figure from the Office for National Statistics means the UK’s annual growth rate of 1.4% is the strongest since the first quarter of 2011.

It represents the first estimate of Q2 GDP growth and reflects improved output in all of the construction, manufacturing and services sectors.

Marcus Bullus, trading director of MB Capital, said: “While the Government and policymakers will declare this first estimate of second quarter GDP as a major step forward, deep down the markets will be disappointed by the rate of growth.

“Yes, it was in line with expectations. But the awkward silence of the journalists in the media conference betrayed the sense of disappointment.”

Bullus said despite the strengthening economy, challenges remain from high inflation and static or negative wage growth, both of which will inhibit spending.

“There’s something artificial about the current resurgence of the economy. It doesn’t really correlate to economic reality. It may be more of a lurch forward after years of austerity rather than the beginning of anything sustainable.”

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