The UK National Institute of Economic and Social Research suggest in a report published today that the U.K. economy may have grown at the slowest pace in almost four years in the second quarter.

Growth was probably 0.3 percent in three months through June, compared with 0.4 percent in the first quarter, the London-based institute, whose clients include the U.K. Treasury and the Bank of England, said in an e-mailed statement. That’s the slowest pace since the third quarter of 2001, according to government figures.

U.K. economic growth in the first quarter lagged expansion in the euro area for the first time in more than four years as manufacturing production shrank and consumer spending stalled, the government said on June 30. NIESR said the Bank of England, which meets today, should lower its benchmark interest rate from 4.75 percent, the highest in the Group of Seven Industrialized Nations.

The BoE which meets today is not expected to lower rates - although this move is not entirely excluded. Most likely a reduction will be in the offing soon.

This entry was posted on Thursday, July 7th, 2005 at 8:01 am and is filed under A Few Euros More, Economics. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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Unemployment continues a slow but steady rise in the UK. More eviedence of the slowing economy?

U.K. jobless claims rose for a third month in April and wage growth eased to the slowest in almost a year amid signs expansion in Europe’s second-largest economy is faltering.

The number of people claiming unemployment benefit rose by 8,100 to 839,400, the Office for National Statistics said in London today. Wages excluding bonuses rose 4.1 percent in the first quarter, down from 4.3 percent in the month-earlier period.

Record levels of employment have helped underpin 51 straight quarters of expansion in the U.K., prompting the Bank of England to raise interest rates to the highest among the Group of Seven industrialized nations. The central bank last week trimmed its economic forecast and said a slowdown in consumer spending has “become more marked,” leading to speculation of a rate cut.

This entry was posted on Wednesday, May 18th, 2005 at 11:38 am and is filed under A Few Euros More, Economics. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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