U.K. Economic Growth Slows as Downside Risks Remain, Niesr Says
U.K. economic growth slowed in the three months through August and “significant downside risks” to the outlook remain, the National Institute of Economic and Social Research said.
Gross domestic product rose 0.2 percent in the period, compared with 0.3 percent in the quarter through July, Niesr, whose clients include the Bank of England and the U.K. Treasury, said in an e-mailed statement in London today.
Data today showed industrial production surged the most in 25 years in July as it rebounded from the disruption of an extra public holiday the previous month. While gauges of services and manufacturing improved in August, the Bank of England has said the outlook is “unusually uncertain” amid the debt turmoil emanating from the euro area.
“While we expect the economy to continue to expand, it will take more robust rates of growth than we have recently seen to close the U.K.’s large negative output gap,” Niesr said. “Significant downside risks to the outlook persist, not least the future evolution of the euro-area crisis.”
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