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UK Economy Expands Faster in Second Quarter

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UK Economy

The UK economy grew more than expected in the second quarter of the year before the U.K. exit the European Union.

The economy rose from 0.4 percent in the first quarter to 0.6 percent in the second quarter, according to the Office for National Statistics on Wednesday. Economists had earlier forecast 0.5 percent expansion.

Experts have said this may mark the end of over three years of continuous growth as they expect the economy to slowdown in the third and fourth quarter because of U.K decision to leave the European Union.

The drop in business confidence and consumer sentiment that have supported the economy since the oil glut started is putting pressure on both the Bank of England Governor Mark Carney and Prime Minister Theresa May to adjust monetary and fiscal policy to accommodate current situation.

According to the figures, the powerhouse of the economy services sector grew 0.5 percent. While industrial output rose 2.1 percent, the biggest jump since 1999. Construction dropped 0.4 percent.

On a yearly basis, the economy grew by 2.2 percent from a year earlier.

The U.K. is the first among G7 nations to report second quarter GDP. The U.S is due on Friday after the Federal Reserve monetary policy meeting.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.