Slow growth for UK in quarter to May

News Article - 12 June 2008
Category: Business

Britain's economy "scarcely" grew over the quarter to May, increasing by just 0.2 per cent over the three months, a new report states.

According to the National Institute of Economic Social Research (NIESR), the UK economy could slow still further after growth in gross domestic product dropped to 0.2 per cent, down from 0.4 per cent in the quarter to April 2008 and 0.6 per cent in the three months to February.

The economic think tank found that UK GDP growth weakened to a three-year low in the three months to May this year.

Inflationary pressures are preventing the Bank of England from cutting interest rates to boost the economy and unemployment claims have increased slightly, official figures show.

Martin Weale, director of NIESR, commented: "Despite the fact that the economy is now scarcely growing, we share the view that concerns about inflation make it more likely that interest rates will be raised than reduced in the coming months.''

Accounts software can help small firms to manage their finances during a period of slow economic growth, experts suggest.

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