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UK economy slows, some sectors speed

Wednesday, July 26, 2017 - 01:51

Britain's economy gathered only a little speed in the second quarter after almost stalling at the start of the year, propped up by the services sector and a booming film industry. Laura Frykberg reports.

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It's been slow progress for the UK economy.. GDP figures show growth in the second quarter at 0.3 percent, up from 0.2 in the first... Year-on-year, it's decelerated to 1.7 percent from 2. (SOUNDBITE) (English) UK FINANCE MINISTER, PHILIP HAMMOND SAYING: "This is a steady performance in the second quarter, we've grown fro four and a half years, we've created record levels of employment, so we should be proud of that, but we shouldn't be complacent." The figures, fueled by the service sector and film industry... Are not quite what they were this time last year... When Britain's economy defied expectations after the Brexit vote, by growing 1.8 percent. Among the fastest of the seven largest major advanced economies. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "You have to acknowledge that there is a slowdown taking place, and that was what was feared all along in the aftermath of the Brexit vote, and it does seem like it's coming to pass now. There has been a clear dependence for the UK economy on consumption, and what's really worrying now." But others sectors have shown signs of improvement. Over half a billion dollars was invested in UK financial technology companies in the first half of the year... While corporate giant BMW has announced it will build electric Mini's in the UK... Although that could be in part down to the weak pound. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "Truth be told the only obvious fact from Brexit so far has been the drop in sterling. And naturally those companies that have a sectors which benefit from foreign earnings seem to be doing better at the moment than that or domestically focussed companies." Sterling's fall also accelerating exports, as revealed by the CBI on Tuesday. Saying UK factories have increased their output at the fastest rate since the mid 1990s, over the past three months.

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UK economy slows, some sectors speed

Wednesday, July 26, 2017 - 01:51