- David Kern, chief economist at the BCC
The second estimate of Britain's GDP showed no revisions to both quarterly and annual readings of economic growth. The UK economy was confirmed as one of the fastest growing western countries in the second quarter, as economic output expanded 0.7% between April and June, marking the tenth straight quarter of positive growth, according to the Office for National Statistics. Measured on an annual basis, the economy grew 2.6%. Growth in the June quarter was primarily supported by a strong services sector, climbing 0.7% and contributing to quarterly growth with 0.6 percentage points. Both the volume and value of business activity within UK services rose in the quarter to August, suggesting this sector, which accounts for as much as 78% of the total economic output, is set to continue supporting the overall economic performance in the third quarter, the Confederation of British Industries reported. Meanwhile, household consumption unexpectedly decelerated to a 0.7% growth during the second quarter, and business investment rose 2.9% in the second quarter compared with the previous three-month period.
Economists expect slower growth in China to affect western economies through weaker trade, even though Britain is unlikely to be hurt much, as trade with China accounted for around 4% of all British exports in the last year, official figures show.
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