The U.K. Economy Grew Less
The U.K. economy probably grew less in the second quarter than the government previously estimated as manufacturing slumped in June, economists said. 0.6 percent from the first three months of the year, less than the 0.9 percent rate reported in July. Manufacturing, which accounts for about a fifth of the economy, declined the most in more than two decades in June. Automakers led by General Motors Corp. and Ford Motor Co. pared production at U.K. factories. The figures will give the Bank of England room to leave interest rates at a 38-year low. Everybody is braced for a weaker number because of the dismal industrial production figures in June. The central bank cut its benchmark lending rate 2 percentage points last year to 4 percent, the lowest since 1964, as the U.S., Germany and Japan tumbled into recession. That curbed demand for exports from the U.K., prompting manufacturers to cut production. Europe's second-largest economy grew 0.1 percent in the first quarter, the slowest pace in a decade. June's slide in industrial production suggested the rebound is incomplete. Factories slashed output 5.3 percent in June.
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