UK Q2 GDP Annual Growth Revised Higher

Britain's gross domestic product expanded 1.3 percent year-on-year in the second quarter of 2019, slightly above a preliminary estimate of 1.2 percent and compared to a revised 2.1 percent growth in the previous period . It has not been weaker since the first three months of 2018.

On the expenditure side, household expenditure rose 1.1 percent in the second quarter (vs 1.3 percent in Q1); and government spending advanced 4.0 percent (vs 2.8 percent in Q1). Meanwhile, fixed investment growth slowed to 0.3 percent (vs 0.8 percent in Q1) amid a further decline in business investment (-1.4 percent vs -1.6 percent).

Exports fell 1.4 percent, after a 2.8 percent advance in Q1; while imports dropped 0.4 percent, compared to a 14.9 percent jump in the previous period. As a result, the trade deficit widened to £10.453 billion from £−9.067 billion in Q2 2018.

On the production side, the service industries expanded 1.7 percent (vs 2.4 percent in Q1) as output rose for: distribution, hotels and restaurants (2.7 percent vs 4.7 percent); transport storage and communications (5.4 percent vs 6.5 percent); business services and finance (0.3 percent vs 0.8 percent); and government and other services (1.4 percent vs 1.6 percent). Industrial production fell 0.9 percent (vs 0.2 percent in Q1), as output contracted for manufacturing (-1.3 percent vs 0.9 percent) and mining and quarrying (-0.3 percent vs 5.8 percent). By contrast, utilities output grew 0.9 percent (vs -6.9 percent in Q1) and water supply, sewerage, waste management and remediation activities rose 0.5 percent (vs -0.4 percent in Q1). Construction expansion slowed to 1.8 percent from 3.7 percent in Q1.

UK Q2 GDP Annual Growth Revised Higher

ONS | Joana Ferreira |
9/30/2019 9:18:02 AM