Markets
British Economy Weighs Upon By Weak Consumer Spending in 2Q
- British Economy Weighs Upon By Weak Consumer Spending in 2Q
The British economy expanded marginally in the second quarter of the year as weak consumer spending and stagnant investment eat deep into the economy.
The economy grew at 0.3 percent rate in the second quarter, according to the data released by the Office for National Statistics.
Consumer spending rose 0.1 percent in the quarter, its lowest since 2014.
While both imports and exports grew 0.7 percent. However, services sector rose to 10-month high. Indicating that the largest sector remains strong ahead of Brexit.
“This data confirms the picture of a moderation in U.K. growth that we expect to continue through the second half of the year,” said John Hawksworth, chief economist at PwC. “But we don’t think this slowdown should turn into a recession.”
The economy grew at half of 0.6 percent growth rate recorded by the Euro-area in the second quarter of the year. Sign that the Euro-area have the edge going to the table.