UK economy grows 0.4% in second quarter, meeting forecast

UK economic growth slowed in the second quarter of the year, as expected, according to numbers on Thursday.

The Office for National Statistics said UK gross domestic product advanced 0.4% quarter-on-quarter on the three months to June 30, slowing from a 0.6% rise in the first quarter.

The reading was in line with consensus cited by FXStreet.

"In output terms, growth in the latest quarter was mainly caused by an increase of 0.5% in the services sector; the construction sector increased by 0.3% and production output showed no growth," the ONS said.

Year-on-year, the UK economy grew 1.2% in the second quarter, beating the FXStreet cited forecast of a 1.1% rise, and picking up speed from 0.9% in the first quarter.

In June alone, on-month GDP growth was 0.3%, after the UK economy had tread water in May. In April, it fell 0.1% from March.

"The growth in June was because of a rise of 0.4% in services and was partially offset by falls of 0.2% in production, and 0.1% in construction," the ONS said.

Sterling traded at USD1.3493 after the data, barely budging from the USD1.3494 it bought beforehand.

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