UK economy limps to growth in Q2

Office for National Statistics figures reveal 0.2 per cent UK GDP growth as royal wedding and bank holiday backlash bites

The UK economy grew a lacklustre 0.2 per cent in the second quarter of 2011 after several 'special events' took their financial toll, the Office for National Statistics (ONS) claimed.

This comes after a 0.5 per cent increase in Q1 2011. According to the ONS, the special events in question were the extra April bank holiday, the royal wedding and the after-effects of the Japanese earthquake and tsunami.

In total, services output for the UK increased by 0.5 per cent in Q2, compared with an increase of 0.9 per cent in Q1. The largest contribution came from business services and finance.

Transport, storage and communication increased by 1.1 per cent, compared with a 2.5 increase the previous quarter.

However, government and other services showed zero growth compared with a 1.1 per cent increase in the first quarter of the year. Health made the largest positive contribution to the quarter.

Other low points included a 1.4 per cent drop in total production output for the quarter, compared with just 0.1 per cent in Q1, and a 0.3 per cent decrease for manufacturing as a whole, after it increased by 0.7 per cent in the first quarter.