Niesr sees UK GDP growth accelerate in three months to July powered by consumer spending

The National Institute of Economic and Social Research (Niesr) has estimated UK GDP rose by 0.7 per cent in the three months ending in July after growth of 0.6 per cent in the three months ending June 2013.

Niesr said their latest estimates suggest a narrowing of the UK's large negative output gap, underpinned by a growth in consumer spending despite falling real wages. As can be seen from the graph above (taken from the report), the current recovery has been more drawn out than those following previous recessions.

Last week, Niesr said it saw the UK economy growing by 1.2 per cent this year – double the Office for Budget Responsibility’s March forecast of 0.6 per cent growth. This could rise to 1.8 per cent the following year.