UK GDP growth has “muddled through” in the second quarter hitting 0.3 per cent, according to the ONS first estimate, in line with consensus expectations.
It is a slight improvement on the previous quarter.
The UK delivered GDP growth of 0.2 per cent in Q1 and was the worst performing economy in the EU for the quarter.
In the lead up to today’s announcement Hargreaves Lansdown senior investment analyst Laith Khalaf said a reading of 0.3 per cent could be described as “muddling through” and would suggest the disappointing first quarter was not a one-off blip.
This week’s GDP estimate follows an announcement that the IMF was downgrading its growth forecasts for the UK and the US for 2017.
It has revised its UK forecast to 1.7 per cent from 2 per cent, while it has downgraded its US forecast to 2.1 per cent from 2.3 per cent based.
Premier head of UK equities Chris White says a lack of consensus and clarity around Brexit is likely to hinder economic growth.
“It’s difficult to foresee substantial domestic or foreign investment in the UK given the uncertainty and existing overseas investors may reconsider their positions,” says White.
“The economy will get little help from consumers, unless consumer debt rises further, and the government is cautious about increasing expenditure despite the electorate’s concerns about austerity.”