THERESA May’s Government has come under fire over "weak" growth in the economy after official statistics showed GDP advancing at a sluggish pace in the second quarter of the year.
GDP growth of 0.3 per cent in the period April to June was a marginal improvement on the 0.2 per cent seen in the first quarter of 2017 but was well down on the 0.7 per cent recorded in the last three months of 2016.
The Office for National Statistics's initial estimate covered the three months after Britain formally notified Brussels of its intention to leave the European Union in the Prime Minister’s Article 50 letter of March 29.
Labour’s John McDonnell said the latest figures represented the worst first half of a year since 2012 and reflected "weak growth under a weak government".
Sir Vince Cable for the Liberal Democrats warned that only the spending of shoppers had kept the economy moving at a "modest" pace.
But Philip Hammond defended the Government's record.
"Our economy has grown continuously for four and a half years, delivering record levels of employment. We can be proud of that but we are not complacent,” declared the Chancellor.
"We need to focus on restoring productivity growth to deliver higher wages and living standards for people across the country.
"That is why we are committed to investing in infrastructure, technology and skills to deliver the best possible base for strong future growth," he added.
In contrast, Mr McDonnell said the GDP figures exposed the last seven years of Tory economic failure.
"Growth for the first half of 2017 is below expectations and it follows continued data showing working families are being squeezed with wages not keeping up with prices.
"The truth is that the Tories' austerity cuts have undermined working people's living standards and weakened the UK economy," claimed the Shadow Chancellor.
Sir Vince suggested that the GDP numbers were likely to keep Britain near the bottom of the international growth league.
"Manufacturing has actually fallen by 0.5 per cent due largely to a slump in car production while construction has also fallen. Only the service sector has enabled us to have very modest growth,” noted the Lib Dem leader.
"We are continuing to see the effects of a weak pound, which has hit wages and consumer confidence. It has only been the spending of shoppers, based on consumer debt, that has kept the economy going.”
He added: "This lack of demand is due to ministers insisting on an extreme Brexit, that is creating uncertainty and reducing investment."
Meanwhile, the manufacturers' trade body, EEF, said the decline in manufacturing activity was driven by a "sharp contraction" in motor vehicle production.
Its chief economist Lee Hopley said: "The story of hard-pressed consumers caught between the rock of rising inflation and the hard place of sluggish wage growth is still in play but not as dominant in these initial numbers.
"Indeed, service sector activity has nudged up in the past three months whilst manufacturing and construction have disappointed.”
Mr Hopley said that while the weakness in manufacturing appeared at odds with the more upbeat survey data, the sharp contraction in automotive output, due to new model introductions, over the quarter seemed to have been behind the overall decline in manufacturing output.
"While these data do not provide a definitive answer on to the big question of whether Brexit is hitting the UK economy, it probably does confirm that interest rates will remain on hold at next month's Super Thursday," he added.
Frances O'Grady, the TUC General Secretary, said it was clear the Government was relying on consumers for what little growth there was.
"But the signs of strain are starting to show with real wages falling and families getting deeper into debt.
"With businesses reluctant to invest, it's clear the Government needs to step up to the plate with a plan to boost investment and to get wages rising again,” she insisted.
"And they should start by ending public sector pay restrictions and putting the minimum wage up to £10 as soon as possible," Ms O’Grady added.
Tim Roache for the GMB union was more blunt, saying: "This Government's economic plan is built on sand and as it crumbles we're all bearing the brunt.
"We were told austerity was needed for a strong economy. All evidence points to that being a load of rubbish. We need action on low pay, a plan for decent jobs and Government investment in industry," he added.
Elsewhere, Ben Brettell, senior economist at Hargreaves Lansdown, said there were "tentative signs" that growth might improve in the second half of the year.
"Last week saw news that retail sales rose ahead of expectations, indicating the consumer may still have some petrol in the tank - though the Bank of England has expressed caution over rising levels of personal debt.
"Meanwhile, inflation began to recede, which if it continues in the coming months could end the squeeze on real incomes," he added.
Focusing on the second quarter, Chris Williamson, chief business economist at IHS Markit, said: "The confirmation of the lacklustre performance of the economy so far this year surely also diminishes the chance of an interest rate hike any time soon, especially as growth prospects for coming months have become increasingly skewed to the downside."
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