26 August, 2011
Growth from April to June was restricted by one-off factors including the extra bank holiday in April for the royal wedding and the Japanese tsunami hitting the import of car parts.
Industrial output fell 1.6% during the quarter however services output rose 0.5%.
The economy expanded by 0.7% during the same time in 2010.
The ONS said that without the one-off factors, growth between April and June compared with the previous quarter could have reached 0.7%.
Philip Shaw, economist at Invested, said: “We are expecting a rebound in Q3 purely because of the unwind following the royal wedding bank holiday in April.”
“But the outlook for underlying growth in the second half looks uncertain.
“There is a risk that the economy continues to slow down. That's not our central view but it is a risk.”
Source: The Mortgage Introducer
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