In the April to June period, UK GDP grew by 0.2% Q/Q according to the first estimate, which is exactly in line with expectations. The figure suggests that the British economy barely grew in the second quarter after already a disappointing end of 2010 and start of 2011, when the UK economy stagnated. The breakdown shows that the production industry suffered in the second quarter, contracting by 1.4% Q/Q, but this was more than offset by growth in the services (0.5% Q/Q) and construction (0.5% Q/Q) sectors. More surprising was that the ONS said special factors such as the additional holiday for the royal wedding, the after-affects of the tsunami in Japan and the record warm weather subtracted up to 0.5% Q/Q. GDP growth could be as high as 0.7% Q/Q if the special effects were discounted. Overall, the data are somewhat stronger than could have been expected, especially with the ONS remark taken into account. Overall however, the UK economy is still struggling to stay out of recession, so there is no reason to be enthusiastic.