National Institute of Economic and Social Research economist Fergus
Jimenez-England said the UK has so far resisted the recent energy-price shock
better than many feared. Q2 GDP rose 0.4% following a 0.6% gain in Q1. Services
output increased 0.4% in June, offsetting declines in construction and
industrial production. Jimenez-England warned the recent growth pace may be hard
to sustain; he expects inflation and unemployment to rise in coming months, and
said business confidence is fragile and could weaken further if energy-price
volatility continues. He said the economy has shown welcome resilience but is
not yet out of the woods.
