UK GDP Growth Beats Expectations in Q2


The UK’s economy advanced 0.6 percent on quarter in the three months to June of 2016, higher than a 0.4 percent expansion in the previous period and better than market expectations of 0.4 percent. Industrial production rebounded and posted the biggest gain since 1999, boosted by mining, quarrying and manufacturing while services growth slowed and construction shrank for the second quarter, preliminary estimates showed.

Industrial production jumped 2.1 percent, rebounding from a 0.2 percent drop in the previous period and contributing 0.3 percentage points to growth: manufacturing surged 1.8 percent (-0.2 percent in the previous period); energy supply went up 4.7 percent (0.7 percent in the previous period); water and waste management rose 2.6 percent (2.4 percent in the previous period) and mining and quarrying increased 1.4 percent (-2.2 percent in the previous period).  

Growth in the services industries slowed to 0.5 percent from 0.6 percent in the previous quarter, contributing 0.37 percentage points to growth. Growth in the business services and finance industries eased to 0.5 percent from 0.7 percent and was the main reason behind the reduction in services growth between the 2 quarters.

Construction output fell 0.4 percent, following a 0.3 percent decline in the previous period.  

On a yearly basis, the economy advanced 2.2 percent, better than market expectations of 2 percent and the best performance in a year. 

UK GDP Growth Beats Expectations in Q2


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
7/27/2016 9:53:23 AM