Britain's economy is growing - but not enough

Britain’s economy grew by 0.4% in the second quarter, up from 0.6% in the first three months, according to the Office for National Statistics. On a per-head basis, growth was also 0.4% and the annualised rate is 2%, slightly ahead of the Office for Budget Responsibility’s spring forecast—giving Chancellor John Healey some additional fiscal room ahead of the October budget. Economists had expected a weaker outcome linked to geopolitical risks, including the Strait of Hormuz. While services drove growth—especially computer programming and advertising—production was flat. The Bank of England still forecasts slower 1.1% growth this year, with higher inflation and unemployment later.