NIESR, the National Institute of Economic and Social Research, has forecast GDP growth of 0.7 pct in its first estimate for Q2.

Official final Q1 figures are due 12 July, and first estimate for Q2 around the end of the month, however NIESR estimates see a rise in GDP of 0.9 pct in the three months to May, and 0.7 pct to June (Q2).

The slightly lower figure in three months of Q2 suggests that most of the growth occured over April and May.

"Our monthly estimates of GDP suggest that output grew by 0.7 per cent in the three months ending in June after 0.9 per cent in the three months ending in May. Further acceleration in GDP growth would start to reverse the rise in unemployment seen over the recession.

"Unfortunately, the UK economy does face headwinds. Fiscal consolidation both in the UK and the euro area will restrict growth in the short-term and there is clearly a risk that this rate of growth will not be maintained through the rest of this year." said NIESR in a statement.

NIESR is the longest established independent economic research institute with over sixty years experience.

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