UK GDP Growth Accelerates to 1.5% YoY in Q3

In the second quarter of 2013, UK’s GDP growth was reported at 1.5 percent on an annual basis, driven by the construction and services sectors. It is the strongest year-on-year GDP growth since first quarter of 2011.
ONS | Krisztina Györffy | 10/25/2013 10:40:42 AM
Construction contributed the most to the expansion, growing 4.9 percent year-on year in Q3 of 2013, after a 1 percent contraction in the previous quarter.

The services industries also made a positive contribution to GDP growth, up by 1.9 percent . Particularly, the index for distribution, hotels and restaurants increased by 3.8 percent (slightly down from 4 percent in the second quarter), transport, storage and communications output rose 2.5 percent, and business services and finance output was up by 2.1 percent. Government and other services output increased by 0.1 percent.

The index of production fell by 0.3 percent, mainly due to the sharp drop in the output of electricity, gas, steam, air (-4.5 percent), mining and quarrying (-4.1 percent), and the decrease of 1.6 percent in agriculture, hunting and forestry. 

It is mportant to note, that the Olympics and Paralympics took place during Q3 2012, raising the level of GDP in this quarter.

Before the sharp fall in output in 2008 and 2009 the economy peaked in Q1 2008. From peak to trough the economy shrank by 7.2 percent and in Q3 of 2013 GDP was estimated to be 2.5 percent below the peak in Q1 2008. 

UK GDP Growth Accelerates to 1.5% YoY in Q3