UK economic growth expected to slow

Published on Tuesday, 25 January 2011 09:12
Posted by Scott Buckler

The UK's economic growth is expected to have slowed over the last three months of 2010, economists have warned

The GDP figures, due to be released at 0930 GMT, are expected to show growth of between 0.2% and 0.6% in the three months up to December.There was 0.7% growth in the previous three months and 1.1% in the second quarter of 2010.

Business Secretary Vince Cable said the bad weather at the end of last year was likely to depress the latest figures.

"There is a reasonable consensus that this is a pretty bad quarter for reasons that are primarily to do with climate," he told BBC Radio 4's Today programme.

"[The weather] was very bad and has clearly had a significant effect on construction and other weather-dependent industries." But he added: "What is apparent is that there is quite strong growth beginning to happen in manufacturing and exports."

Howard Archer, chief UK and European economist at IHS Global Insight, said there was considerable uncertainty over how much December's severe weather hit overall activity.

As a result, the range of forecasts is wide, from 0.2% to 0.6%.

The National Institute of Economic and Social Research has projected that output grew 0.5% in the period under review, and the British Chambers of Commerce has forecast a figure of 0.4%.

Source: ©BBC News

The views expressed in the contents below are those of our users and do not necessarily reflect the views of GovToday.

Add comment