Weather and world cup behind economic growth improvement

The UK economy grew by 0.4% in the second quarter of the year, continuing the sluggish performance.

The economy has grown by more than 0.5% in just one of the 10 quarters since the EU referendum.

Economists had forecast 0.4% growth in the quarter, with good weather, a Royal Wedding and the World Cup all factors in driving consumer behaviour. Other data has shown strong performance in food and drink sales, although household appliances and other spending has been under pressure.

Louise Bennett, the chief executive of the Coventry and Warwickshire Chamber of Commerce, said it was a slight improvement but highlighted the uncertainty in the
economy.

She said: “We welcome the improved figures for Q2 against the very slow growth in the first quarter of the year.

“But it means we are on course for a very low growth figure over 2018 and it underlines some of the issues businesses are facing.

“We would urge the Government to ensure that there is a heavy focus on the domestic agenda and creating a business environment that incentivises investment and addresses the burden of up-front costs that companies face.”