British economy grew by 0.3% in July

September 9, 2018 10:21 pm0 commentsViews: 7

British economyThe British economy grew by 0.3% in July on a monthly basis, supported by the heat wave and the World Cup, according to data from the Office of National Statistics. For the second quarter of the year there was a growth of 0.6% on a quarterly basis – the fastest rate of acceleration of nearly an year.

“The services were strong, and retail sales were good, boosted by the warm weather and the World Cup”, said Rob Kent-Smith from the National Statistics Service.

The services sector, which accounts for 80% of the UK economy, grew by 0.6% in the second quarter of the year compared to the previous three months. The construction sector recorded its fastest growth rate on a quarterly basis from February 2017 – from 3.3%. On a monthly basis for July the growth is 0.5%.

However, the industrial production in the United Kingdom shrank in the second quarter by 0.5% compared to the first three months, although the mining industry is growing. On a monthly basis, the decline was 0.2% in July, with the slowdown being mostly the performance of the pharmaceutical sector.

The data comes a few days before the meeting of the Bank of England on the monetary policy of the country, with expectations that interest rates be kept at their current levels. The interest rates increased in August for the second time in the last ten years to a level of 0.75%.

Meanwhile, data on Britain’s trade deficit also showed that it shrank to 3.4 billion GBP in the second quarter. In July alone, the trade deficit declined to just 111 million GBP, the smallest deficit in the last five months.

Exports of goods and services from the United Kingdom increased by 2% in July on a monthly basis to its highest level ever reported – 54.38 billion GBP. The imports of goods and services rose by 0.4% to a record 54.49 billion GBP.

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