NIESR: Economic growth slowed from June to August, report shows

Thursday, 08 September 2011 09:51

The UK economy slowed in the three months to August, the latest study from the National Institute of Economic and Social Research (NIESR) has revealed.

According to the organisation's gross domestic product estimates, output grew by 0.2 per cent in the period, following growth of 0.6 per cent in the quarter ending in July.

"The UK continues to experience weak economic growth," the report continued. "But even this poor rate of growth is flattered by the drop in output in April. If this economic weakness persists over the next few months, the Monetary Policy Committee will probably implement a further round of quantitative easing."

It follows chancellor of the exchequer George Osborne's admission earlier this week that the economy has weakened.

He said short-term hopes had been revised down in recent weeks, but revealed the Treasury would stick to his deficit-cutting plan.

Meanwhile, the latest official figures from the Office for National Statistics showed the UK economy expanded by 0.2 per cent between May and July, down from 0.5 per cent in the first quarter.

A number of recent reports have highlighted the UK's economic woes, including falling high street sales numbers from the British Retail Consortium and a dip in manufacturing growth from research firm Markit and the Chartered Institute of Purchasing and Supply.

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