LONDON (ShareCast) - The housing slowdown and weaker consumer spending resulted in the lowest quarter-on-quarter economic growth in the UK for three years.

The Office for National Statistics (ONS) said GDP grew 0.2% in the second quarter, having risen 1.6% in the same quarter last year, and down from the 0.3% growth in the first quarter.

Annual pace of expansion was reduced to 1.6% in the quarter, versus 2.3% in the first quarter.

The ONS said the slowdown was mainly due to the fall in the construction sector, down 0.7%, which resulted in sharp declines in house building. Construction output had risen 0.4% in the first quarter.

Service sector output rose 0.4% in the three months to June, 0.1 points higher than the previous three months. Within services industries, transport, storage and communications rose 2.2%.

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