GDP growth figures remain a concern

Growth from April to June was restricted by one-off factors including the extra bank holiday in April for the royal wedding and the Japanese tsunami hitting the import of car parts.

Industrial output fell 1.6% during the quarter however services output rose 0.5%.

The economy expanded by 0.7% during the same time in 2010.

The ONS said that without the one-off factors, growth between April and June compared with the previous quarter could have reached 0.7%.

Philip Shaw, economist at Invested, said: “We are expecting a rebound in Q3 purely because of the unwind following the royal wedding bank holiday in April.”

“But the outlook for underlying growth in the second half looks uncertain.

“There is a risk that the economy continues to slow down. That's not our central view but it is a risk.”