UK enjoys fastest growth in almost a year after World Cup and weather boost

Record ID: 1355646

  • Title: UK enjoys fastest growth in almost a year after World Cup and weather boost
  • Date: 10th September 2018
  • Summary: LONDON, ENGLAND, UNITED KINGDOM (SEPTEMBER 10, 2018) (REUTERS) SOUNDBITE (ENGLISH) CITY INDEX, MARKET ANALYST, KEN ODELUGA, SAYING: "We have a 0.6 percent growth and that's higher than normal 4 percent growth expected. It allows us to have more confidence in a normal 4 percent growth year on the quarter when we get the quarterly data. On the other hand, there isn't really
  • Embargoed: 24th September 2018 14:42
  • Keywords: UK britain GDP Brexit consumer spending World Cup summer
  • Location: LONDON, ENGLAND, UK
  • City: LONDON, ENGLAND, UK
  • Country: United Kingdom
  • Topics: Economic Events
  • Reuters ID: LVA0028X1O6ML
  • Aspect Ratio: 16:9
  • Story Text: Britain reeled off its fastest economic growth for nearly a year in the three months to July thanks to strong consumer spending lifted by the World Cup and unusually warm weather, official figures showed on Monday (September 10).
    Gross domestic product in the three months to July was 0.6 percent higher than in the previous three-month period, the Office for National Statistics said, gathering pace from 0.4 percent growth in the three months to June - and at the top end of forecasts in a Reuters poll.
    This was the fastest growth since August 2017 and should reassure the Bank of England, which raised interest rates last month for the second time in more than a decade, forecasting third-quarter growth of 0.4 percent but only a lacklustre 2018 expansion of 1.4 percent.
    Consumers have been squeezed for more than a year by the jump in inflation which followed the pound's tumble after the 2016 referendum, especially as wages have failed to keep up.
    That said, in recent months industry surveys have shown that an unusually warm summer encouraged many Britons to splash out on drinks and pub and restaurant visits.
    Last week, closely watched purchasing managers' data pointed to third-quarter growth of 0.4 percent, as a pick-up in services activity outweighed a slowdown in manufacturing and construction activity.
    Monday's data showed that Britain's dominant services sector grew by 0.6 percent in the three months to July, its biggest rise since January 2017, while 3.3 percent growth in the much smaller construction sector was the fastest since February 2017.
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