UK rate rise less likely on GDP

Britain’s economy failed to build much momentum over the past three months after almost stalling at the start of the year, reducing an already slim chance that the Bank of England will soon reverse last year’s emergency interest rate cut.

Economic output grew by 0.3% on the quarter, edging up from a sluggish rate of 0.2% in the first quarter, as a booming film industry and bright spots elsewhere in the services sector were largely offset by contractions in manufacturing and construction.

The figure was the weakest first half to any year since 2012.