Commenting on today’s GDP data, Ms Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said:
“Today’s data continue to show that the economy has been motoring along at a fairly healthy clip over the past two and half years. But that’s not to say the recovery has played out as we previously thought with the consumer being in the driving seat of growth which looks set to be the case in the near term with healthy labour market indicators and signs of solid wage growth.
“We have, however, seen a somewhat weaker growth profile of investment across the economy and little comfort that the UK’s export performance is about to take off. Neither of which augur well for the prospect of better balanced growth.
“The data also brings disappointing confirmation that manufacturing dipped into a technical recession in mid-2015. Looking at how individual sectors have been performing, the supply chain effects from the decline in oil and gas investment are responsible for the biggest output declines. But a more challenging export environment, seen in recent business surveys, has made the more significant contribution to the downward revision this year.
“If anything, the overall picture remains one of a pretty resilient domestic economy, but one that hasn’t yet managed to move the needle towards one in which growth is broad based across households, exports and investment.”