Britain's economy picked up some speed in the second quarter after a sharp winter slowdown in early 2018 but lost momentum in June, underlining its stuttering performance ahead of Brexit in less than eight months' time.
Gross domestic product expanded 0.4 percent in the April-June period, as expected in a Reuters poll of economists, the Office for National Statistics said.
The economy's annual growth rate picked up slightly to 1.3 percent in the second quarter, only a touch above a nearly six-year low of 1.2 percent at the start of the year.
Quarterly growth in household spending quickened slightly to 0.3 percent from 0.2 percent in the first quarter, but stood only 1.1 percent higher than a year ago - the weakest annual increase since early 2012.
Consumers have struggled to cope with weak wage growth for much of the past decade and a spike in inflation after the Brexit vote only added to the problem. More recently, wages have risen more quickly than inflation but there have been signs that household finances remain stretched.
Retailers in particular have struggled against weak household spending. On Friday, department store chain House of Fraser was bought from its administrators by discount retailer Sports Direct.
Weaker Pace
Britain's economy slowed after the 2016 vote to leave the European Union and is expected to continue to expand at a weaker pace than most other developed economies as the March 2019 Brexit date approaches.
But news that the economy recovered from its winter slump is likely to reassure Bank of England policymakers, who last week raised interest rates to a new post-financial crisis high of 0.75 percent despite concerns about the approach of Brexit.
Britain's government has yet to agree a divorce deal with Brussels and has stepped up planning for the possibility of leaving the bloc without any formal agreement.
"We fear the chill winds from Brexit will only intensify unless the withdrawal agreement is signed off soon," economist Samuel Tombs of consultancy Pantheon Macroeconomics said.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
