UK GDP Grows 1.2% in Q2

The gross domestic product in the United Kingdom expanded 1.3 percent year-on-year in the second quarter of 2018, little-changed from a near six-year low of 1.2 percent in the previous period and matching market expectations. Household consumption rose the least since the first quarter of 2012.
ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com 8/10/2018 9:21:17 AM
On the expenditure side, household expenditure rose 1.1 percent in the second quarter (vs 1.2 percent in Q1), the weakest pace of growth since the first quarter of 2012; and gross fixed capital formation went up 0.7 percent (vs 1.5 percent in Q1) as business investment growth eased to 0.8 percent (vs 2 percent in Q1). Also, government spending grew by 1.1 percent, slower than 1.2 percent in the previous period.

Exports fell 1.8 percent, following a 2.4 percent gain in Q1; while imports declined at a slower 0.6 percent, after increasing by 0.6 percent the previous period. As a result, the trade deficit widened to £7.244 billion from £5.563 billion in Q2 2017. 

On the production side, the service industries expanded 1.5 percent (vs 1.2 percent in Q1), as output rose for: distribution, hotels and restaurants (1.5 percent vs 0.9 percent); transport storage and communications (3.4 percent vs 2.9 percent); business services and finance (1.7 percent vs 1.6 percent); and government and other services (0.2 percent vs 0.1 percent). Industrial production went up 1.4 percent (vs 2.4 percent in Q1), as output rose for: manufacturing (1.3 percent vs 2.5 percent); mining and quarrying (0.3 percent vs -0.1 percent); electricity, gas, steam and air conditioning supply (0.8 percent vs 4.1 percent); and water supply, sewerage, waste management and remediation activities (3.9 percent vs 1.3 percent). Construction expansion picked up to 0.8 percent from 0.3 percent in Q1.

UK GDP Grows 1.2% in Q2