UK records fastest growth in nearly a year after World Cup and weather improvement

LONDON, Sept. 10 (Reuters) – Britain's economy has grown at its fastest pace in almost a year in the last three months of July, spurred by rising consumer spending due to the World Cup. in the heat.

In the three months to July, gross domestic product was 0.6% higher than the previous quarter, rising from 0.4% in the previous three months to June and at the top of the forecast in a Reuters survey.

These data are likely to reassure the Bank of England, which raised interest rates last month for only the second time since the financial crisis, forecasting a 0.4% growth in the third quarter and a mediocre growth of 1%. 4% in 2018.

The UK economy has slowed since the Brexit vote in June 2016, with its annual growth rate rising from first place among the rich nations of the Group of Seven lagging behind Japan and Italy for last place in the rankings. .

Monday's data shows that year-over-year GDP growth in July was up 1.6%, up from 0.3% in June, again above expectations annual growth of 1.4% and 0.2%.

"Services grew particularly strongly, with retail sales performing well, driven by warm weather and the World Cup. The construction sector also rebounded after a weak start to the year, "said Rob Kent-Smith, ONS statistician.

Consumers in particular have been affected by the rise in inflation following the fall of the pound after the 2016 referendum, particularly because wages have not been up to par.

That said, in recent months industry studies have shown that an exceptionally hot summer encouraged many Brits to participate in drinks, pub and restaurant tours.

Last week, PMI data showed growth of 0.4% in the third quarter, as the recovery in services was faster than the slowdown in manufacturing and construction.

Monday's data shows UK services sector grew 0.6% in three months to July, its largest increase since January 2017, while growth of 3.3% in the construction sector

Industrial production, however, contracted 0.5% over the period, penalized by widespread declines in the manufacturing sector, oil and gas extraction and electricity production.

Nevertheless, Britain's trade deficit in the goods and goods and services sector alone has fallen to its lowest since February, exceeding economists' expectations in a Reuters poll.

The trade deficit in goods fell to 9.973 billion pounds in July from 10.679 billion pounds in the previous month, and the total trade deficit in goods and services fell to 111 million pounds.

Britain's merchandise trade deficit with the European Union is the lowest since April 2016.