UK Annual GDP Growth Revised Down To 2% In Q4



UK's gross domestic product expanded 2 percent year-on-year in the fourth quarter of 2016, the same as in the previous period and below the preliminary estimate of 2.2 percent. Fixed investment and household consumption were the main drivers of growth while business investment contracted for the fourth straight period.

On the expenditure side, gross fixed capital formation rebounded (0.9 percent after showing no growth in Q3) and both household expenditure (3.2 percent from 2.9 percent) and government spending (0.6 percent from 0.2 percent) rose at a faster pace; while business investment contracted for the fourth straight period (-0.9 percent from -2.3 percent in Q3).

Exports fell 0.4 percent, following a 1.4 percent gain in Q3; while imports grew 1.7 percent, after rising by 4.2 percent the previous period.

On the production side, the service industries expanded 3.1 percent (3.3 percent in Q3), as output rose for: Distribution, hotels and restaurants (5.9 percent from 5.1 percent in Q3); transport storage and communications (4.5 percent from 4.8 percent); business services and finance (2.6 percent from 3.1 percent); and government and other services (1.4 percent from 1.7 percent). Industrial production rose at a faster 1.9 percent (1.2 percent in Q3), as growth accelerated for: manufacturing (1.9 percent from 0.8 percent in Q3); electricity, gas, steam and air conditioning supply (4.5 percent from -0.8 percent); and water supply, sewerage, waste management and remediation activities (6.7 percent from 5.1 percent). By contrast, mining and quarrying, including oil and gas extraction, shrank 2.9 percent (2.1 percent in Q3) . Construction expansion slowed to 0.9 percent from 1.6 percent in Q3, and agriculture output continued to fall (-3.6 percent from -4.2 percent in Q3).

Looking at 2016 as a whole, growth slowed to 1.8 percent from 2.2 percent in 2015 and 3.1 percent in 2014. Fixed investment and government spending slowed while household consumption grew further.

UK Annual GDP Growth Revised Down To 2% In Q4


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
2/22/2017 10:40:16 AM