Consumer Spending Boosts UK GDP Growth in Q2
The British economy expanded 0.6 percent on quarter in the three months to June of 2016, higher than a 0.4 percent growth in the previous quarter and in line with the preliminary reading. Household spending boosted growth and investment rebounded, figures from the second estimate showed.
8/26/2016 9:59:54 AM
The biggest contributor to growth was household consumption, up 0.9 percent and better than a 0.7 percent increase in the previous period. Yet, consumer spending recorded the highest increase in seven quarters.
Consumption of non-profit institutions increased 0.6 percent, slowing from a 1.7 percent rise in the previous period while public spending shrank 0.2 percent, the first decline in six quarters.
Gross fixed capital formation surged 1.4 percent, recovering from losses in the previous two quarters. Business investment grew 0.5 percent.
Exports edged up 0.1 percent, following a 0.4 percent decline in the previous three months and imports grew at a faster 1 percent. As a result, net trade made a negative 0.3 percent points contribution to growth.
Year-on-year, the GDP advanced 2.2 percent, also in line with earlier estimates.