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UK economy boosted by warm weather and royal wedding

MailOnline iPhone app The department store chain is closing 31 of its outlets putting 6,000 jobs at risk  The electronics giant has gone bust, closing shops across the country and putting thousands of jobs at risk.    The baby and toddler chain is closing 60 shops across the UK putting up to 900 jobs at risk.   Poundworld announced it was going into administration on June 11 after talks with potential buyer R Capital broke down, putting 5,100 jobs at risk.     The shops have been squeezed by  fierce competition from other high street names and the rise  of internet shopping. Many local communities have warned that their high streets are becoming ghost towns as big name retailers  which once attracted the crowds move out.  And while the sunshine and Royal wedding offered a rare bright spot for British business, the UK economy reflects a far more mixed picture. Construction output fell by 1.7 per cent in May, its third consecutive decrease. The figures will spark along among politicians who are grappling with a housing crisis amid a long-term failure to build enough affordable homes. PwC chief economist John Hawksworth said the recent rebound in services and construction output could result in a near doubling of growth in the second quarter. And he warned that the Bank of England's Monetary Policy Committee (MPC) could seize upon the figures to raise interest rates next month - hitting homeowners with mortgages.   He said: 'We estimate that growth in the second quarter will end up at around 0.4%, given signs from business surveys of continued forward momentum in services and construction in June.  'This pick-up in growth could be enough to tip the majority of the MPC towards a rate rise in August, though this is not yet a done deal given continuing uncertainties over Brexit and rising global trade tensions.' Bank of England Governor Mark Carney last week highlighted that a recent revision to the first quarter growth rate from 0.1 per cent to 0.2 per cent confirmed his view of the UK's positive growth trajectory. He said the incoming data gave him 'greater confidence' that softer UK activity in the first three months of the year was 'largely due to the weather, not the economic climate'. The Bank is widely expected to raise interest rates from 0.5 per cent to 0.75 per cent in August. The ONS also revealed that in the three months to May, production fell by 0.6 per cent compared with the three months to February.

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