U.K. GDP Growth Quickens to 0.7% Through July, Niesr EstimatesScott Hamilton
Britain’s economic growth accelerated in three months through July as consumer spending strengthened, according to an estimate from the National Institute of Economic and Social Research.
Gross domestic product rose 0.7 percent compared with a 0.6 percent gain in the second quarter, the London-based institute, whose clients include the Bank of England and the U.K. Treasury, said in a statement today. Niesr repeated its forecast that it doesn’t expect GDP to reach its peak of early 2008 until 2015.
The acceleration suggests “a narrowing of the U.K.’s large negative output gap,” the institute said. “Consumer spending growth has underpinned the recent gains in economic momentum, in spite of the continued decline of real consumer wages.”
The estimate follows data today showing that industrial production rose 1.1 percent in June as factory output surged the most in a year. Reports in the past week showed that manufacturing, construction and services all strengthened in July. Bank of England Governor Mark Carney will tomorrow present the central bank’s new economic forecasts as well as an assessment on using forward guidance as a policy tool.