UK: Economy continues to grow below its long run trend of 0.6% - NIESR

"Our monthly estimates of GDP suggest that output grew by 0.2 per cent in the three months ending in July 2017 after growth of 0.3 per cent in the second quarter of 2017," National Institue of Economic and Social Research announced on Thursday.

Key takeaways:

• The U.K. economy continues to grow below its long run trend of 0.6%
• The service sector, which was the main driver for economic growth in the second quarter, appears to have slowed
• We see a modest recovery in the second half of this year in response to strengthening global growth and a weaker currency
• On the flip side, consumer spending is likely to be weighed down by weak wage growth and investment spending held back by Brexit related uncertainty
• We see quarterly economic growth strengthen somewhat to 0.4-0.5% as the economy rebalances away from domestic demand and towards net trade