NIESR said UK GDP is estimated to have grown 0.2% in the three months ending May, following 0.1% grow in the three months ending April.
Amit Kara, Head of UK macroeconomic forecasting, said:
“Economic growth has slowed materially since the start of this year and it continues to remain weak.”
“One reason for sluggish growth is the disruption caused by severe weather in March, particularly to the construction sector.:
“The latest data also shows a notable slowdown in manufacturing sector output that appears to be driven by both domestic and external conditions.”
“By contrast, the retail sector and the dominant services sector may be recovering.”
“Looking ahead, we expect the economy to strengthen from here mainly because monetary policy in the UK and elsewhere continue to remain accommodative.”
“The risks to that outlook are, however, weighed to the downside. The most important of these remains Brexit but there are others, most notably an escalation of tensions in international trade and a potential flare-up in uncertainty in the Euro Area because of political developments in Italy.”
