The UK economy grew only 0.3% in April-June, following an even slower expansion of 0.2% in the first quarter. In other words, thus far the 2017, growth in the UK economy is much slower than the 0.6% trend rate that has existed since 1955.

It is also becoming increasingly clear that Britain’s economy has underperformed its rivals in the second quarter. That is, other advanced countries posted much stronger economic growth rates. Namely:

• France: Grew by 0.5% in Q1 and Q2
• US: Grew by over 0.6% in Q2, and 0.3% in Q1
• Spain: Grew by 0.9% in Q2, and 0.8% in Q1
• Sweden: Grew by a rollicking 1.7% in Q2, and 0.6% in Q1

It is rather obvious that Britain’s real economy is being held back by rising inflation and concerns over Brexit.

While Britain’s economy in Q2 did recover somewhat from its anemic performance in the first quarter, there is still a high level of political and economic uncertainty which is slowing growth. This level of uncertainty almost guarantees weak economic growth until there is more clarity on how Brexit and the fallout from the general election will impact businesses operating in the UK.