London economic growth 'sluggish', survey says

London's economy has been described as "sluggish" after a new study found only marginal growth in recent months.

Firms in the capital improved domestic sales in the quarter to June, but orders were said to be "flat", the London Chamber of Commerce (LCC) said.

Businesses performed better in export markets, highlighting the low levels of demand in the UK, the report said.

But it added that more firms in the capital increased their workforce in recent months.

Warm weather

"London's businesses saw conditions improve during quarter two but at a frankly disappointing and sluggish rate, with growth still way below pre-recession levels," Peter Bishop, deputy chief executive of the LCC, said.

The UK economy grew by 0.2% between between April and June 2011, the Office for National Statistics said.

One-off factors such as April's extra bank holiday for the royal wedding and the effects of the Japanese earthquake and tsunami in March could have affected growth, analysts said.

The warm weather also reduced demand for fuel for domestic heating.

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