Think-tank wary on UK growth

BRITAIN’S economic recovery softened in the quarter to August and the pace of growth will decelerate further in the coming months, a leading economic think-tank warned yesterday.

The National Institute for Economic and Social Research (Niesr) said that output only expanded by 0.7 per cent on the previous quarter.

The pace of growth may have eased from the 1.3 per cent in the three months to July, but the think-tank noted that this was still a robust rate for the UK. Niesr does not expect output to pass the peak it reached in early 2008 until at least 2012.