U.K. economy likely to have grown 0.3 pct in Q2 2017, says Lloyds Bank

The U.K. is set to release its first estimate of the second quarter GDP growth next week. This is likely to show lacklustre growth for the second consecutive quarter, noted Lloyds Bank in a research report. The June retail sales data released this week was modestly stronger than anticipated but the bulk of recent economic data has surprised on the downside.

“We expect economic growth of only 0.3 percent well below ‘trend’ and only modestly higher than Q1’s 0.2 percent rise”, stated Lloyds Bank.

The initial estimate of GDP does not have any information on which areas of spending have driven growth but the indications are that consumer spending is likely to have been sluggish again. Meanwhile, the GfK consumer confidence for July will be closely observed for any signs for prospects in the second half of the year. The measure is likely to be down modestly on June, added Lloyds Bank.