Report: UK economic growth masks underlying weaknesses

The country's economy grew by 0.3% in March and by 0.6% in the first quarter. "Although this result exceeded the pessimistic forecasts at the beginning of the year and most expectations, it now becomes dangerously clear that the country's economy is merely hovering on the verge of stagnation," Nellis said. The service industry is becoming a narrow lifeline for economic growth, while manufacturing, investment, and consumer demand remain weak. He stated that, with tax revenues expected to lag behind rising inflation and welfare spending, the Middle East conflict could bring additional pain. Nellis added that support for households and businesses, as well as closer trade ties with the European Union, may help sustain the country's economy in the future.