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UK GDP Growth Slows In July: NIESR

The UK economy grew at a slightly slower pace in three months ended July, the National Institute of Economic and Social Research said Thursday.

According to monthly GDP estimates of NIESR, output grew 0.2 percent in three months to July after expanding 0.3 percent in the second quarter.

The economy continues to grow below its long run trend of 0.6 percent, the think tank said.

"We see a modest recovery in the second half of this year in response to strengthening global growth and a weaker currency, but on the flip side, consumer spending is likely to be weighed down by weak wage growth and investment spending held back by Brexit-related uncertainty," Amit Kara, head of UK macroeconomic forecasting at NIESR, said.

The think tank forecast quarterly growth to strengthen somewhat to 0.4-0.5 percent as the economy re-balances away from domestic demand and towards net trade.

"Economic growth however, remains below its long-run average growth rate of 0.6 percent because of subdued productivity growth," said Kara.

by RTTNews Staff Writer

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