"There are signs that UK consumers are being squeezed, with today’s data showing household spending advancing only 0.1% over the quarter."
Growth was primarily driven by services, which grew by 0.5% between Quarter 1 and Quarter 2.
In the expenditure measure of GDP there was relatively strong growth in government spending and investment; there was, however, a slowdown in growth in both household spending and business investment, to 0.1% and 0.0% respectively in Quarter 2.
UK GDP growth in volume terms increased by 1.7% between Quarter 2 2016 and Quarter 2 2017.
Yesterday, the pound fell to its lowest level agaisnt the Euro in eight years.
Jonathan Chitty, Investment Analyst at Brown Shipley, said: “The second estimate of UK GDP for the quarter to 30 June contained no surprises.
“Whilst it is clear that the Brexit-fuelled catastrophe predicted by some has not yet come to pass, there are signs that UK consumers are being squeezed, with today’s data showing household spending advancing only 0.1% over the quarter.
“The inflation caused primarily by a weaker pound, has led consumer prices to increase more quickly than wages, tightening disposable incomes and causing people to delay big purchases like vehicles.
“When compared to 2016 there has been something of a slowdown in the first half of 2017, and with institutions like the Bank of England and the International Monetary Fund sounding decidedly cautious on the UK’s prospects, a great deal of uncertainty lies ahead for the world’s fifth biggest economy.”
