Dip in investment sours growth figures

Britain’s economy grew at its fastest pace in three years during the second quarter, figures yesterday confirmed, but business investment fell, raising some questions over the strength of the recovery.

Disappointed: Howard Archer. Picture: Contributed

Growth between April and June was 0.7 per cent, according to the Office for National Statistics – in line with its previous reading.

In year-on-year terms, growth was put at 1.3 per cent, down from the previous estimate of 1.5 per cent.

Business investment fell 2.7 per cent in the second quarter, compared with a previous reading of a 0.9 per cent rise.

Howard Archer, chief UK economist at forecasting consultancy IHS Global Insight said: “It was disappointing to see business investment revised down markedly.”