Saturday 4 July 2015 11:38 am

CBI says UK economic growth slowed in the second quarter, warns of the effects of Greek debt crisis on UK trade

UK manufacturing, retail, and services growth was down for the second quarter of the year.

According to a survey business lobby group the Confederation of British Industry (CBI), the main reason for the drop was the fast rate of growth reported in the previous quarter. The CBI has said it expects growth to be strong during the rest of the year.

Read more: Greece referendum: Greek banks prepare to trim clients' savings as fears circulate ATMs could run out of cash next week

The CBI's survey reported a reading of 14 per cent growth in the three months to June, compared with 33 per cent in May. 

Rain Newton-Smith, CBI director of Economics, said:

Despite an easing in performance this month, activity over the quarter as a whole has been good. We expect the economy to sustain a solid pace of growth over the remainder of the year as lower oil prices and inflation continue to boost real incomes and consumer spending.

Newton-Smith also warned that UK trade could suffer as a result of the Greek debt crisis.

Exporters face real challenges, especially from the impact of a stronger pound against the Euro and still weak global export markets. And whatever the results of the referendum in Greece, we urge Eurozone leaders to move quickly towards a deal that underpins both growth and financial stability, providing certainty for Greece and the wider Eurozone.