The U.K. Economy grew by 0.3 per cent over the three months between April and June accordingly to statistics out this morning.
Figures from the Office of National Statistics show that following the first quarter’s growth of 0.2 per cent, the country has seen the weakest first half of the year in five years.
The bulk of the second quarter growth came from Britain’s dominant service sector, which managed to rebound to grow 0.5 per cent, following a 0.1 per cent expansion at the start of the year.
Services makes up just under four fifths of the economy. Construction and manufacturing were the biggest drags on the economy, contracting 0.9 per cent and 0.5 per cent respectively. After the service sector, film-making was the best performing industry, with motion pictures output up 8.2 per cent in the three months to June, adding 0.07 percentage points to GDP growth.
Rain Newton-Smith, CBI Chief Economist, said:
“Economic growth has remained sluggish in line with our expectations. We expect growth to remain lukewarm over the next couple of years, so providing businesses with certainty and stability has never been more important.
“A limited transition period as we leave the EU where the UK stays in the single market and a customs union until a final deal is in force, would help create a bridge to a new trading arrangement. It would give businesses the confidence they need to invest, expand and create jobs.”