Less than robust consumer spending has negatively affected the UK’s economic growth.

According to the Office of National Statistics , the UK economy posted its worst showing in more than a decade as the Gross Domestic Product (GDP) rose by only 0.4% between the months of April and June. This brings year-on-year growth to a mere 1.7%. This is the weakest the economy has been since the first quarter of 1993.

The country’s very anemic performance has already brought about misgivings on whether Chancellor Gordon Brown will still be able to meet his economic growth forecast of 3% – 3.5% in 2005.

Business solutions experts are already expecting a mere 1.8% of growth for this year. A number of factors have compounded together and contributed to the dismal economic performance of the country. Among these are sluggish exports and business investments, a slowdown in the manufacturing sector and the devastating effect of the recent London bombing attacks. They also added that despite the encouraging retail sales figures – slimmer job prospects could still have an effect on the economy until later this year.

The release of these new economic figures has raised speculations that the Bank of England may finally cut interest rates next month in a bid to help jumpstart the economy and encourage consumer spending.

Some business analysts have expressed optimism over the possible interest rate cuts as it could spur entrepreneurs and businessmen to take advantage of the lower interest rates to set up new businesses or form new companies .

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