26th August 2011
The Guardian reported the announcement and accompanying commentary in its Market Forces blog.
It notes the UK economy grew at the same rate as Spain between April and June, "a meagre" 0.2%. The breakdown reveals industrial output fell by 1.6%, slightly more than previously thought.
Citywire reported how the slowdown could be attributed to series of one-off factors, including the additional April bank holiday, the Royal Wedding and the global fallout from Japan's tsunami.
It adds that economists have gradually downgraded their forecasts for growth in the UK and elsewhere this year to reflect worsening economic and market conditions – with weak employment, consumer and output data, turbulent markets and totally unexpected global events such as Japan's earthquake and the Middle Eastern uprisings.
Economists at Citi yesterday slashed their UK 2012 growth forecasts.
The Guardian also notes how Martin Weale, one of the MPC members who had previously been calling for a rate rise, said there was ‘undoubtedly scope' for more quantitative easing if oil prices continue to fall and the eurozone's debt crisis worsens.
Second quarter GDP numbers for the US are due later today.
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