Warmer weather and World Cup fever buoy up economic growth

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The UK economy grew an estimated 0.4% in the second quarter of this year, buoyed by good weather and the World Cup, it seems.

Economists state that industries had robust growth of 0.5% in Quarter 2 (Apr to June) 2018, which contributed 0.42 percentage points to overall gross domestic product (GDP) growth.

Growth of 0.9% in construction also contributed positively to GDP growth, recovering in the most recent period, following three consecutive months of negative rolling three-month growth.

There is some evidence that warm weather also contributed to an increase in construction output.

However, contraction of 0.8% in the production industries contributed negatively to headline GDP growth.

ONS head of national accounts, Rob Kent-Smith, commented: ‘The economy picked up a little in the second quarter with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year.

‘However, manufacturing continued to fall back from its high point at the end of last year and underlying growth remained modest by historical standards.

‘The UK’s trade deficit noticeably worsened as exports of cars and planes declined sharply while imports rose.’