UK Growth Likely To Slow To 1.9% In Q3 - NIESR

(RTTNews) - The UK economy is set to grow at a slower pace in the third quarter, the think tank NIESR said Friday.

"With catch-up potential still evident in hospitality, transport, business support and the arts, we forecast growth of 1.9 per cent in the third quarter, still notably above historical trend growth rates," the NIESR said in its latest monthly GDP tracker report.

The institute had predicted 4.8 percent growth for the second quarter and 0.9 percent for June. In May, output grew 0.8 percent monthly, which NIESR said was disappointing with little sign of momentum in either April or May outside the sectors which grew due to the lifting of Covid-19 restrictions.

The hospitality sector accounted for 0.7 percentage points of May growth.

"Underlying growth is moderate outside the sectors being unlocked, with supply constraints contributing to the continuing recent stagnation in manufacturing," NIESR Principal Economist Rory Macqueen said.

"It remains to be seen whether the lifting of further restrictions in July contributes to a continuation of strong growth in the third quarter or - if cases of Covid-19 continue to rise - increased caution among consumers and even another national lockdown."