Monthly headlines:
- UK GDP growth up slightly in Q2, boosted by stronger service sector output
- Inflation slows in June, while the UK jobs market goes from strength to strength
- IMF downgrades its UK growth forecast as latest BCC QES points to subdued economic activity
The first official estimate for Q2 2017 GDP growth revealed that the UK economy grew by 0.3% in Q2 2017, up slightly from the growth of 0.2% recorded in Q1.
UK CPI inflation stood at 2.6% in June 2017, down from the 2.9% rise recorded in the previous month, but is still above the Bank of England’s 2% inflation target. Falling fuel prices were the main driver behind the fall in the inflation rate last month.
In the three months to May 2017, UK employment rose by 175,000, mainly driven by a 133,000 rise in the number of full time workers. UK unemployment dropped by 64,000 over the same period. These figures suggest the UK’s jobs market is edging closer to full capacity.
The International Monetary Fund (IMF) has downgraded its outlook for the UK economy. The IMF cut its GDP forecast for 2017 to 1.7%, from its previous forecast of 2.0%. The IMF forecast for UK growth in 2018 was unchanged at 1.5%.
For full details of this month’s economic review click here.
