The UK's economic growth has picked up slightly from the first quarter, according to estimates from an influential think tank, but has remained well below its long-run trend.
The National Institute of Economic and Social Research (Niesr) has put gross domestic product (GDP) growth at 0.3 per cent in the three months ending in June, slightly up from 0.2 per cent in the first quarter.
But this is still well below the long-run trend of 0.6 per cent, and well behind the eurozone's growth rate, which was upgraded to 0.6 per cent for the first quarter by a Eurostat estimate earlier today.
“Growth in services has offset a contraction in industrial output, yet remains subdued when compared with last year,” said Rebecca Piggott, research fellow at Niesr.
“The saving ratio reached an historic low of 1.7 per cent in the first quarter of this year, implying that, so far, households have reduced their saving to cushion the effect of falling real incomes on consumption as inflation rises.”
In May, Niesr projected a 1.7 per cent GDP growth for the whole of 2017, and 1.9 per cent for 2018.
But this is out of sync with the UK's Office for Budget Responsibility, which thinks GDP will grow two per cent this year.