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Britain’s independent economic watchdog, the Niational Institute of Economic and Social Research (NIESR) has estimated that the British economy grew by 0.8 percent in the three months to July.
This is in line with figures for the second quarter of the year, when the economy also grew b 0.8 percent.
However, it said that it shouldn’t be presumed that the Bank of England will raise its interest rate from its current level of 5.75 percent because the economy is strong.
Meanwhile, retail sales in Britain tumbled to a seven-month low in July as high borrowing costs shook consumer confidence.
A survey by the British Retail Consortium indicated that sales were up 1.2 percent in July compared to a year earlier. This rise was half the average monthly growth rate for the second quarter.
Total sales were up just 3.1 percent compared to June’s figure of 5.1 percent increase.
Despite the fall of in retail sales the Bank of England is still likely to raise its interest rate to 6 percent in the near future.
The retail figures are not thought to be a true reflection of consumer confidence in Britain, but a fall out from the recent bad weather and floods.
Meanwhile, oil prices were almost down to the 70 usd mark on Tuesday as prices continued to fall.
The price of a barrel of crude in London was down 18 cents to 70.99 usd per barrel. In New York, the price of a barrel was down 65 cents to 71.41.
15:23
Posted on Aug-08-2007
