UK GDP Growth Revised Up to 0.7% in Q2

UK's gross domestic product expanded 0.7 percent quarter-on-quarter in the three months to June of 2016, revised up from 0.6 percent previously estimated and higher than a 0.4 percent gain in the previous period. It was the 14th consecutive quarter of expansion, as household spending and fixed investment were the main drivers of growth, final figures showed.
ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com 9/30/2016 9:43:01 AM
Total domestic expenditure (the sum of all expenditure by UK residents on goods and services that are not used up or transformed in a productive process) increased by 1.4 percent in the second quarter of 2016, accelerating from a 0.1 percent expansion in the previous quarter.


Household final consumption expenditure increased by 0.9 percent (+0.7 percent in Q1), and has increased for 6 consecutive quarters; government final consumption expenditure was flat (+0.4 percent in Q1); and non-profit institutions serving households' final consumption expenditure increased by 1.7 percent (+1.8 percent in Q1). 

Gross fixed capital formation was estimated to have increased by 1.6 percent (-0.1 percent in Q1) and business investment was estimated to have increased by 1 percent (-1.1 percent in Q1). Including the alignment adjustment, the level of inventories increased by £3.0 billion in Quarter 2 2016, following an increase of £1.2 billion in Quarter 1 2016. Excluding the alignment adjustment, the level of inventories increased by £1.1 billion, following an increase of £2.9 billion.

The trade balance deficit widened to £15.7 billion in Quarter 2 2016 from £12.2 billion in the previous period. Exports decreased by 1 percent in the latest quarter (+0.1 percent in Q1), while imports increased by 1.3 percent (+0.2 percent in Q1).

UK GDP Growth Revised Up to 0.7% in Q2