UK Economy Outlook Revised Downwards

The Office for National Statistics (ONS) has revised downwards its earlier projection for economic growth for the UK economy. Actual growth for the second quarter failed to meet expectations managing to expand by only 0.1 percent compared to the 0.2 percent predicted. Early evidence for the third quarter suggests the economy continued to under perform.

As a result, the ONS updated its view for the first three months of 2012 dropping its prediction to 0.4 percent growth from 0.5 percent. The less optimistic outlook was shared by a Treasury official who noted that “while the UK cannot insulate itself from what is happening to our major trading partners, with financial turbulence in the eurozone and a weaker outlook for global growth, the economy is still growing and this week’s survey data for the manufacturing and service sectors are consistent with continued expansion.”

Source: BBC News

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