UK growth inline with BoE expectations? - UOB

Analysts at UOB explained that according to the flash reading, UK GDP growth increased 0.3% for the second quarter following 0.2% expansion for the first quarter. 

Key Quotes:

"The quarterly growth was in line with expectations and the year-on-year growth rate of 1.7% from 2.0% previously was also in line with expectations. 

There was a rebound in the services sector to register 0.5% growth for the quarter from 0.1% in the first quarter with strength in distribution and leisure sectors as well as a recovery in retail spending. 

Industrial output, however, declined 0.4% in the latest 3 months while construction output declined 0.9%. The data will be in line with the BoE expectations and is unlikely to push the bank closer to raising interest rates."