(RTTNews) - The U.K. economy logged weak growth in the second quarter as estimated in July. The recovery was pulled down by production, though the dominant service sector managed to expand.
The economy grew 0.2 percent in the second quarter from the previous three months, second estimates published by the Office for National Statistics showed Friday. The growth rate slowed from 0.5 percent seen in the first quarter.
On an yearly basis, gross domestic product rose 0.7 percent in the second quarter. The statistical office confirmed the preliminary estimate published on July 26.
The growth was limited by additional public holiday for the royal wedding and the after effects of the Japanese tsunami.
On the production side, total services output moved up 0.5 percent, down from an increase of 0.9 percent in the first three months. Construction output also grew 0.5 percent, reversing a 3.4 percent fall in the prior quarter.
Meanwhile, total production output fell 1.6 percent in the second quarter compared with a decrease of 0.1 percent in the previous quarter. Farm output was down 1.3 percent.
The second estimate excluded the figures on expenditure side this time. The ONS said this was because of the fact that its staff were involved in the preparation of the annual Blue Book guide. It is slated to release expenditure breakdown of GDP with its final reading for the second quarter.
Samuel Tombs, an economist at Capital Economics, noted that the economic recovery had little momentum heading into the third quarter. He expects annual GDP growth of just 1 percent this year and 1.5 percent for 2012.
The Bank of England has trimmed its economic growth outlook for 2012 in its Inflation Report to around 2.7 percent from 2.8 percent. Governor Mervyn King said that headwinds are becoming stronger day by day and the U.K. faces greatest risks from outside world.
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